Feeds

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

Apple targetting the $500-$800 market

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.