Feeds

Apple set to cut iMac prices year on year, claims Jobs

Apple targetting the $500-$800 market

  • alert
  • submit to reddit

Top 10 endpoint backup mistakes

Apple interim CEO Steve Jobs explained the company's pricing strategy when he gave the keynote at the US Cause 98 education-in-IT conference. "Our goal is to drive [prices] lower and lower every year," said Jobs. His goal is to bring prices down to around $100 above what he called "white box" companies -- no name cloners offering "piece of Junk" (according to the great man) for as little as $800. Assuming all this happens, it marks an interesting shift for Apple. Its pricing policy for a given market segment has, by and large, always been to cut the price of the current model, introduce a faster version at a higher price, then phase out the old machine and simultaneously drop the better-specced Mac down to the original price point. Essentially, this maintains the same price point, either directly or as an average of the lower priced old machine and higher priced new model. However, with no Motorola PowerPC Celeron in the works, or compatible cut-price processors from rival manufacturers, if Jobs is to compete in that space, he has to keep cutting the price of, say, 233MHz iMacs while keeping a 'high-end' version based on the latest CPU at the $1299 (or £999, over here in the UK) price point. It will have to be a fairly dynamic process to ensure Apple doesn't end up with a long line of 233MHz, 266 MHz, 300 MHz, 333MHz and up iMacs which will ultimately just confuse the punters (even vendors of Wintel boxes don't like doing that any longer). But if Apple cuts the current iMac to $900 in the new year (paving the way for a new, 300MHz machine at $1299), it should be ready to target the $599 market the following year. ®

A new approach to endpoint data protection

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?