Friday, December 12, 2008
Posted by Vincent Ferrari in "Apple Talk" @ 10:00 AM
"Apple has the luxury of being, well, a luxury brand. Most consumers don't look at Apple and put the company on the same level as a Dell or HP. For consumers who want to save money on a computer or don't want to worry about learning Mac OS X, Apple isn't a consideration anyway. But for those people who have some money to spend, they want the most value for their money. And although some would disagree with their sentiment, I think many believe they get more value from a Mac than any other company's products. People who buy Macs aren't looking to save money; they're looking to buy a premium brand because of the perceived value of the product. Apple understands that; we understand that; why don't analysts? Sure, the market is moving towards cheaper alternatives and some people want smaller laptops, but hasn't anyone noticed that over the past few years, Apple's market share has grown considerably in the face of "cheaper" computers?"
Don is so right on this one. Why should Apple lower its prices and compete in the low-end market? So they can flood the market with sub-par machines that people aren't happy with? Don hits the nail on the head when he points out that people are willing to pay more for Apple because they perceive Apple as a luxury brand that's "worth" more. He even correctly notes in the very next paragraph that, despite the fact that we're in a recession, that has no effect on perceived value. It's amazing how many people have opinions on how Apple should run its business. You would think, from all the unsolicited advice, that things were falling apart or something.