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Apple Market Share vs. Margin Debate Ahead of Reported Back-to-School Promo

Posted May 30, 2008 11:34am EDT by Aaron Task in Investing, Computers, Electronics

It's a day ending in "Y," so there must be new speculation about goings on at Apple.

The latest: Apple is going to announce big back-to-school promotions, "some of the biggest incentives in the company's history," according to AppleInsider.com.

Henry wonders if promotional activity is really a "good thing," because Apple typically hasn't had to put stuff on sale. My take is that Apple may be willing to sacrifice margins in order to gain market share, a smart strategy as it tries to cement its dominance with the under-25 consumer. (Imagine being a college student going to class with a boring Windows-based laptop or, heaven forbid, a Zune.)

At the same time, Apple would be wise to take advantage of demand for its products from adults, too, especially as Microsoft loses its grip on corporate IT budgets.

Meanwhile, the closing of New York's 24-hour Apple store has some folks buzzing about the possibility of a 3G iPhone commercial. More important, Apple continues to rack up agreements with international carriers as it prepares (we all assume) to soon roll out the 3G iPhone.

101 Comments

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 01:46PM EDT

apple and all their products are a joke. its just the few that are obsessed that push their superiority when a mac is no better than a windows based desktop or notebook. They only people that should need a mac are graphic designers and people who are into themselves. Plus the commercials are pathetic. Blattenly trashing microsoft with annoying punch lines. I salute microsoft for not countering with a equally trashy commercials. Mac is really the minority group that feels the need to attack the majority group (microsoft) in order to feel superior or make people think they are. But thats ok keep buying those macs, ill just go get a dell or hp that does performs better, has more bells/whistles, and costs less.

Carlos Quintana
Carlos Quintana - Friday May 30, 2008 01:47PM EDT

Gee, guys what is the fanatism with Apple growing or not, if they grow Great for the people here and Asia! Just enjoy the computer that you have and move on. Unless you own part of Apple and you are getting the profits otherwise, who cares!

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 02:01PM EDT

exactly, no one really has any problems with PC's. Its just the few idiots that dont know how to keep their PC's in good workings order. I just graduated college and have been using PC's my whole life without any virus problems. Mac people need to get off their pedestal and realize that they have been hypnotized by the media and other mac users. And its true, people who buy macs are people who are way to into themselves. Nothing against apple, they are doing well and should continue to (even though those commercials are tasteless and annoying).

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 02:07PM EDT

People who defend HP & Dell against the surging tide of Apple are morons & have no clue about what the future beholds for Apple.

Stanley
Stanley - Friday May 30, 2008 02:11PM EDT

MS is also used on most 'invisible pcs'. Find me a mac be used as a cash register or other specialty machine. Many run a flavor of windows or NT.

Christopher
Christopher - Friday May 30, 2008 02:23PM EDT

Can't speak about where you guys live, but here in California Apple exists as an aspiration brand amongst many high-school kids. Ironic to me, as I've been using Macs since the 1990's, back before they were cool. Fact is, I WISH they remained a niche product, where people come up and ask you "what is that computer?" since it's safer computing where Mac OS was a minority of users (but I digress). The kids may not have a Mac, but they want one because of the image. Go into any Apple Store here, and it's packed primarily with young people playing with Photo Booth. Go into Best Buy, and the Mac area is similarly busy with people checking out what all the fuss is about, while the rest of the PCs are neglected.

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 02:27PM EDT

I have used a PC all my life and the only thing you really need is virus protection. This is the only area where MAC OS is superior. However, let's explore this rationally, I would rather have a product that has known safeguards in place with multi-million dollar companies working to protect me. MAC OS users believe they are untouchable and don't need any sort of protection. There are exploits to both. MAC OS does also have silent shell restarts and bugs, I have seen it just working on an OS for a little while. Vista has been working great for me. MAC OS has tons of patches just like Windows, people don't talk about this much but it's a definite reality. Apple has horrible turn around time for support. We had a $6k machine for a graphic designer whose cinema display backlight went out, they would not let me bring into a local store or even the headquarters for a swap, instead there was a 5-7 business day turnaround...what a joke. Go buy a MACbook Air and you'll have the fortune to own the slickest looking laptop that performs like a year 2001 PC all for nearly $3k. Oh, here's a little dialogue between Jobs and his engineering crew: "Engineering: We can make the iPhone with a 3G chip now, why wait till later? Jobs: No, lets stick with EDGE for now as we will release the 3G a year later and sell them all over again." You gotta hand it to Job's; the man is a genius who knows his fans!

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 02:28PM EDT

I have used a PC all my life and the only thing you really need is virus protection. This is the only area where MAC OS is superior. However, let's explore this rationally, I would rather have a product that has known safeguards in place with multi-million dollar companies working to protect me. MAC OS users believe they are untouchable and don't need any sort of protection. There are exploits to both. MAC OS does also have silent shell restarts and bugs, I have seen it just working on an OS for a little while. Vista has been working great for me. MAC OS has tons of patches just like Windows, people don't talk about this much but it's a definite reality. Apple has horrible turn around time for support. We had a $6k machine for a graphic designer whose cinema display backlight went out, they would not let me bring into a local store or even the headquarters for a swap, instead there was a 5-7 business day turnaround...what a joke. Go buy a MACbook Air and you'll have the fortune to own the slickest looking laptop that performs like a year 2001 PC all for nearly $3k. Oh, here's a little dialogue between Jobs and his engineering crew: "Engineering: We can make the iPhone with a 3G chip now, why wait till later? Jobs: No, lets stick with EDGE for now as we will release the 3G a year later and sell them all over again." You gotta hand it to Job's; the man is a genius who knows his fans!

Dave
Dave - Friday May 30, 2008 02:29PM EDT

Ha, Dell and HP gets you more computer for your buck and dont have any difference in ease of use. The only people who will tell oyu otherwise are Mac users. People who are artists or graphic designers should be using Macs, but if you dont need it for that then its much more practical to buy a PC. As stated above Mac users are the minority group and therefore subject to a much stronger ingroup and outgroup bias.

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 02:30PM EDT

I have used a PC all my life and the only thing you really need is virus protection. This is the only area where MAC OS is superior. However, let's explore this rationally, I would rather have a product that has known safeguards in place with multi-million dollar companies working to protect me. MAC OS users believe they are untouchable and don't need any sort of protection. There are exploits to both. MAC OS does also have silent shell restarts and bugs, I have seen it just working on an OS for a little while. Vista has been working great for me. MAC OS has tons of patches just like Windows, people don't talk about this much but it's a definite reality. Apple has horrible turn around time for support. We had a $6k machine for a graphic designer whose cinema display backlight went out, they would not let me bring into a local store or even the headquarters for a swap, instead there was a 5-7 business day turnaround...what a joke. Go buy a MACbook Air and you'll have the fortune to own the slickest looking laptop that performs like a year 2001 PC all for nearly $3k. Oh, here's a little dialogue between Jobs and his engineering crew: "Engineering: We can make the iPhone with a 3G chip now, why wait till later? Jobs: No, lets stick with EDGE for now as we will release the 3G a year later and sell them all over again." You gotta hand it to Job's; the man is a genius who knows his fans!

Aman
Aman - Friday May 30, 2008 02:30PM EDT

I have used a PC all my life and the only thing you really need is virus protection. This is the only area where MAC OS is superior. However, let's explore this rationally, I would rather have a product that has known safeguards in place with multi-million dollar companies working to protect me. MAC OS users believe they are untouchable and don't need any sort of protection. There are exploits to both. MAC OS does also have silent shell restarts and bugs, I have seen it just working on an OS for a little while. Vista has been working great for me. MAC OS has tons of patches just like Windows, people don't talk about this much but it's a definite reality. Apple has horrible turn around time for support. We had a $6k machine for a graphic designer whose cinema display backlight went out, they would not let me bring into a local store or even the headquarters for a swap, instead there was a 5-7 business day turnaround...what a joke. Go buy a MACbook Air and you'll have the fortune to own the slickest looking laptop that performs like a year 2001 PC all for nearly $3k. Oh, here's a little dialogue between Jobs and his engineering crew: "Engineering: We can make the iPhone with a 3G chip now, why wait till later? Jobs: No, lets stick with EDGE for now as we will release the 3G a year later and sell them all over again." You gotta hand it to Job's; the man is a genius who knows his fans!

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 02:33PM EDT

MAC OS does also have silent shell restarts and bugs, I have seen it just working on an OS for a little while. MAC OS has tons of patches just like Windows, people don't talk about this much but it's a definite reality. Apple has horrible turn around time for support. We had a $6k machine for a graphic designer whose cinema display backlight went out, they would not let me bring into a local store or even the headquarters for a swap, instead there was a 5-7 business day turnaround...what a joke. Go buy a MACbook Air and you'll have the fortune to own the slickest looking laptop that performs like a year 2001 PC all for nearly $3k. Oh, here's a little dialogue between Jobs and his engineering crew: "Engineering: We can make the iPhone with a 3G chip now, why wait till later? Jobs: No, lets stick with EDGE for now as we will release the 3G a year later and sell them all over again." You gotta hand it to Job's; the man is a genius who knows his fans!

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 02:36PM EDT

What is interesting is... it seems the only people still trying to prop up the failed Microsoft dynasty are the "young adults" that started learning about the world when Steve Jobs wasn't at Apple (1985-1996), but now since Macs run OSX and that's the same OS that started the World Wide Web... people all over the world want Macs since they perform far better than Windows. With a Mac, you don't have to "maintain it"... it just works and since there is much better software on Macs than PCs it makes it easy to switch.

Dave
Dave - Friday May 30, 2008 02:50PM EDT

How naive you are to think microsoft and PC's dynasty are coming to an end. PC's are everywhere. My office, my home, my high school, my college, the library. I would say probably 1 in 10 people I know use a Mac. People are just salty about micosofts domination since the 90's. Niether are going to go away. As for the OS and maintaining PC's, many people prefer windows vista and XP over OS, and i never have any virus problems. Weird seeing how i dont have any antivirus software. Gosh for people alll over the world wanting macs i sure see a lot of PC's.

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 02:54PM EDT

Whats weird is that every job I ever applied to asks if I am proficient with Microsoft Word, Powerpoint, Excel, Outlook, etc.. Do Mac's have Microsoft office software?

Yahoo! Finance User
Yahoo! Finance User - Friday May 30, 2008 02:58PM EDT

I attend a fairly geek oriented university, and we all pretty much hate on Mac's all the time. I am not saying that Micro is superior, but i have never heard of a kid being made fun of for having an windows. More often, it is just making fun of kids toting around their Mac status symbols to class.

steelDragon
steelDragon - Friday May 30, 2008 03:01PM EDT

I have used Mac and Windows at my workplace. I loved Mac but no way it can replace Windows. And for those who say that Mac don't have security bugs, let me tell you that Mac release more security patches than windows. I have seen Mac shell crashing very often even when no third party apps are installed on system. Working on Mac is so unproductive that businesses can't replace Windows with Mac.

Edson
Edson - Friday May 30, 2008 03:02PM EDT

Let's face it window's ability to run thousands of applications out performs Mac's, also windows is rolling out it's new operating system withing the next couple of years if not even less, and by the way it looks, they are aiming for mac. So beware Mac user; because Microsoft doesn't like competition, remember that Microsoft has a large share of Mac' stocks. and I think in a few years we we will be seeing window's OS that would look alot like Mac OS x and with the ability to run PC software without the need of emulators, like mac needs. Just Imagine

joe s
joe s - Friday May 30, 2008 03:05PM EDT

This Mr. Blochet guy should get a new job. This guy sure know his stuff. RIGHT!!! He knows nothing. We all remember the late 90's whem he opened his big mouth. Shut the hell up and get a real job Mr. Blochet

Jennifer
Jennifer - Friday May 30, 2008 03:11PM EDT

No, what's "weird" is that you don't even know that Macs have always run MS Office. Macs had Office before PCs did! And yes, you can even start up your Mac in Windows and run the PC-version of Office if you must. Yahoo! Finance User - Friday May 30, 2008 02:54PM EDT Whats weird is that every job I ever applied to asks if I am proficient with Microsoft Word, Powerpoint, Excel, Outlook, etc.. Do Mac's have Microsoft office software?

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