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Re: Apple posted a $55 million Q2 profit
Greg J. Buchner writes ...
>
> On Sat, 18 Apr 1998, Rubywand wrote:
>
> > When you say "comparable" you must mean comparable with Compaq or
> > IBM. Otherwise, these really are high prices.
>
> Of course you have to compare Apple with IBM or Compaq...if you don't, it's
> sort of like comparing a Cadillac to a Yugo.
>
> I know lots of people who have been very happy with Apple's current prices,
> especially considering the value you get for your money.
>
> Apple is a brand name company--you have to compare it to other brand name
> companies or else you aren't doing a fair comparison.
>
True enough; and, that may have been JB's point, too.
Suppose we go ahead and assume that Apple's prices are roughly on a
par with those for comparable systems from IBM and Compaq. The next
question is: So what? Except for some corporate buyers, people usually
shop for features and price. Below are Apple's G3 mini-tower systems &
prices along with a snapshot of the real PC competition:
I. Apple mini-tower G3 PowerMacs
"Good"
Specs: 233MHz G3/ 32MB RAM/ 4GB SCSI HD/ 2MB SGRAM Video/ 24x CD-ROM
Price (no monitor): $1999
"Better"
Specs: 266MHz G3/ 64MB RAM/ 4GB SCSI HD/ 6MB SGRAM Video/ 24x CD-ROM
Price with 17" Apple ColorSync monitor: $3878
"Best"
Specs: 300MHz G3/ 128MB RAM/ 2x 4GB SCSI HD/ 6MB SGRAM Video/ 24x
CD-ROM
Price with 20" Apple ColorSync monitor: $6668
II. Some typical PC systems
CyberMax ValueMax H3 (266 MHz)
6x86MX, 266 MHz, 64MB SDRAM, 4.3GB hard disk,
cache: 512k/ 83MHz mboard/ Video: STB Nitro 3D 4MB EDO/
Audio: Ensoniq PCI + 2 A-L speakers/ 32x CD-ROM/ 56k modem
17-inch monitor CX700 .28mm
04/15/98
$1,399
....
CyberMax PowerMax B2 (333 MHz)
Pentium II, 333 MHz, 64MB SDRAM, 5.1GB hard disk,
cache: 512K/ 66MHz mboard/
Video: Diamond Stealth 3D 40000 4MB SGRAM in AGP/
Audio: Ensoniq PCI + 2 A-L speakers/ 32x CD-ROM/ 56k modem
17-inch monitor CyberMax CX700 15.7 in. view. .28mm
04/15/98
$1,999
NEC Direction 300 L
Pentium II, 300 MHz, 64MB SDRAM, 4.3GB hard disk,
cache: 512k/ Video: Number Nine Reality 334 4MB SGRAM in AGP/
Audio: wavetable sound + 2 A-L speakers/ 32x CD-ROM/
56k modem
17-inch monitor .27mm
04/17/98
$1,999
Vektron Vision II PTi 2 (266 MHz)
Pentium II, 266 MHz, 64MB SDRAM, 8.4GB hard disk,
cache: 512k/ Video: Matrox Mil. II 4MB in AGP/
Audio: Creative SB 64AWE + 2 A-L speakers & sub-woofer/
32x CD-ROM/ 56k modem
17-inch monitor Mag Innovision
03/03/98
$1,999
....
Treasure Chest TCV-9300
Pentium II, 333 MHz, 128MB SDRAM, 8.4GB hard disk,
104-key KB, MS Mouse, Windows 95, 3.5" floppy,
cache: 512k/ Video: Matrox Mil. II 8MB WRAM in AGP/
Audio: Creative SB AWE64 + A-L speakers
32x CD-ROM/ USR V.90 56k modem
17-inch monitor .28mm
$2,359
....
NEC PowerMate Enterprise 8100
Pentium II, 400MHz, 64MB SDRAM, 14.4GB hard disk
cache: 512k/ Video: ATI Rage Pro 3D 8MB SDRAM in AGP/
Audio: Crystal PCI/ 32x CD-ROM/ Fast Ethernet
17-inch monitor NEC C700 .27mm
$3,198
MidWest Micro PRO-333 Office Pro PC
Pentium II, 333 MHz, 128MB SDRAM, 8.4GB hard disk,
cache: 512k/ Video: ATI Xpert@Work 8MB SGRAM in AGP/
Audio: Creative SB AWE64 + 2 A-L speakers and sub-woofer/
32x CD-ROM
19-inch monitor .26mm
$3,199
Dell Dimension XPS R400
Pentium II, 400MHz, 64MB SDRAM, 14.4GB hard disk
cache: 512k/ 100MHz mboard/
Video: STB Velocity 4MB SGRAM in AGP
Audio: Turtle Beach PCI + 2 A-L speakers & sub-woofer/
2x DVD/ 56k modem
17-inch monitor .25mm
$3299
Notes: Cost for 128MB instead of 64MB- add $130
Cost for 21" .22mm monitor instead of 17"- add $300-$400
Now, let's compare the lowest priced mini-tower Apple G3 PowerMac
with the lowest priced PC in our sample:
"Good" Apple G3 PowerMac
Specs: 233MHz G3/ 32MB RAM/ 4GB SCSI HD/ 2MB SGRAM Video/ 24x CD-ROM
Price (no monitor): $1999
CyberMax ValueMax H3 (266 MHz)
6x86MX, 266 MHz, 64MB SDRAM, 4.3GB hard disk,
cache: 512k/ 83MHz mboard/ Video: STB Nitro 3D 4MB EDO/
Audio: Ensoniq PCI + 2 A-L speakers/ 32x CD-ROM/ 56k modem
17-inch monitor CX700 .28mm: $1,399
Result: The PC offers 32MB more RAM, 2MB more Video RAM, ... AND it
comes with a 17" monitor for $600 _less_ than the Apple system.
Next, let's compare the "Best" Apple G3 mini-tower PowerMac with a
typical higher end PC:
"Best" Apple G3 PowerMac
Specs: 300MHz G3/ 128MB RAM/ 2x 4GB SCSI HD/ 6MB SGRAM Video/ 24x
CD-ROM
Price with 20" Apple ColorSync monitor: $6668
NEC PowerMate Enterprise 8100
Pentium II, 400MHz, 64MB SDRAM, 14.4GB hard disk
cache: 512k/ Video: ATI Rage Pro 3D 8MB SDRAM in AGP/
Audio: Crystal PCI/ 32x CD-ROM/ Fast Ethernet
17-inch monitor NEC C700 .27mm
$3198
Add $130 for 128MB SDRAM + $400 for a 21" .22mm monitor
$3728
Result: The PC offers 6.4GB more hard disk (plus it is on a single
drive), 2MB more Video RAM, a slightly bigger monitor, ... for $2940
_less_.
Look at the TCV-9300, a typical medium range PC sporting a humble
333MHz Pentium II:
Treasure Chest TCV-9300
Pentium II, 333 MHz, 128MB SDRAM, 8.4GB hard disk,
104-key KB, MS Mouse, Windows 95, 3.5" floppy,
cache: 512k/ Video: Matrox Mil. II 8MB WRAM in AGP/
Audio: Creative SB AWE64 + A-L speakers
32x CD-ROM/ USR V.90 56k modem
17-inch monitor .28mm
$2,359
Add $400 to get a 21" .22mm monitor and you have decent competition
for Apple's "Best" G3 mini-tower PowerMac at $3,909 _less_.
Clearly, Apple is not remotely close to competing with PC for the
home shopper market. It is mildly astonishing that some business and
educational buyers so easily pass up major cost savings; but, then,
business types were the last bunch to persist in paying $49.95 for a box
of 10 "certified" 5.25" diskettes.
Rubywand