Time for an audit of Microsoft's 'Apple Tax'
Microsoft puts forth a 'tax return' showing the cost difference between a Windows PC or Mac purchase. However, CNET News' Ina Fried suggests auditors take a close look at the itemized deductions.
(Credit: Microsoft)Microsoft is back touting the "Apple Tax" that it says Mac buyers are paying, this time filling out a fake tax return listing all of what it claims are the extra costs of opting for Windows' leading rival. But I'd argue that this time Microsoft is in danger of being audited.
The document, posted on Microsoft's Windows Blog on Thursday, compares the cost of a PC and Mac purchase, making the case that buyers can save more than $3,000 in buying two Windows PCs as opposed to two Macs. The "tax return" is based on a Microsoft-paid-for white paper (PDF) from technology analyst Roger Kay.
While I don't take issue with Microsoft's basic point that Macs can be more expensive, the assumptions in the white paper and the blog strike me as suspect.
Kay looks at the five-year cost of buying the two machines and making a series of upgrades along the way, as well as buying certain software and services.
The paper assumes we are talking about Windows switchers who already have two licenses to Quicken and Microsoft Office, so Kay adds $70 and $149 for the Mac side and assumes zero cost on the PC side. Even if that were true, that makes the assumption that users would not want to upgrade their software.
But Kay makes a different assessment when it comes to Apple's iLife, which is included in the cost of a new Mac. In his five-year cost analysis, Kay adds a $99 upgrade of iLife in year three, something that is optional, rather than mandatory.
On the services side, Kay adds a three-year warranty to the PC and AppleCare on the Mac side. AppleCare is somewhat more than Dell's warranty. Fair enough.
Then, Kay also includes Apple's one-on-one, in-store consulting service, for which there is no PC parallel. One could even argue that the PC buyer should have to add in a cost for the Geek Squad service that removes crapware from a Windows machine.
The analysis also includes Apple's definitely pricey, but also totally optional MobileMe service. Although Microsoft has its free Windows Live services on the Windows side, cost-conscious Mac users can also use a variety of free services from Google, Yahoo, or even Microsoft itself.
I talked to Roger Kay about the analysis he did, which was commissioned by Microsoft. Kay said he had already shaved from his analysis some of the costs that were presented to him by Microsoft.
"If there's a couple more in there, I wouldn't be surprised," he said, referring to my quibbles. "If I found another $500 (in savings) it wouldn't change things much."
On the hardware side, Microsoft has its clearest case of being cheaper, but again, Kay and Microsoft overplay their hand. For a desktop on the Mac side, Kay goes with Apple's professional Mac Pro desktop. Now, to be fair, there aren't a lot of Mac models to choose from, but the far less costly iMac is really the company's only consumer desktop line.
"You could have chosen another machine," Kay said. But with PCs, he said, you get to shop around. "That particular piece of the economics seems to hold up pretty well."
Microsoft first started touting this idea of an Apple Tax in an interview last October. I'd argue, as I have, that the tax exists, but it is one that the average buyer knowingly pays for what they perceive as the differences between the PC and Mac experiences. In any case, the economic differences, while large, aren't as big as Kay and Microsoft make them out to be in this study.
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina. 





And pc users have to upgrade software like Quicken and Microsoft office too. So software wise, when the prices are compared, you save more buying Apple iwork and quicken than MS Office and quicken.
PC users also have to purchase backup software to run on their computer, while Mac users can use the built in Time Machine to backup to their external harddrive.
Also PC users have to remember that unless they are tech savy (most aren't) they are going to have to pay some tech support guy to come out and setup their wireless router securely and also remove all the bloatware that came installed on their pc.
They also have to consider that idealy, their pc's will need to be reformatted ever 2 years at least to keep them running up to speed. Thats more tech support expense that Mac users don't have...
I'm sorry Microsoft, your math is screwed on this one.
Backup is included in Vista
Reformat every two years. What are you doing wrong with your PC?
They forgot the PC Penalty in the figures - an endless subscription to anti-virus software, and hours of lost productivity tweaking the PC to get it working right if you're an average user.
And why a Mac Pro as a desktop option? A Mac Mini maxed out costs about $1,000-$1,200 - by the time it's obsolete in 5-6 years, it will be time to get a new machine anyways.
But then, Microsofts numbers wouldn't add up, would they?
Perhaps they should get Mr. Madoff on their payroll.
Exchange does, of course, have many more features than MobileMe, but as a consumer with maybe a small family home network, e-mail, calendar, address book, and bookmark synchronization is all I need. Exchange is overkill, even for some small businesses yet alone a household, and requires you set up a server exposed to the Internet (if you want the live sync with your mobile at least).
MobileMe vs. Windows Live might be a better comparison.
Those documents are simply another kind of marketing material, with no scientific value.
Please, just ignore it.
@merlefisher: reformat? what the french toast are you talking about?
anyway, Apple has to come a bit more of a way to match the amount of support Windows has.
I understand where Microsoft is coming from, but I agree with you Ina: I'm more than willing to pay the extra money for the piece of mind I have. I'm a switcher. I used to be a PC-only household. Now I have three macs and one linux machine. And honestly, I'm happier for it.
Experience with Dell warranty support:
* Call Dell's service number
* Give them my service tag/serial number so they can reference my warranty
* For one incident, the part was overnighted to me and on my door by 10AM the next day. I had it unboxed and into my new system within the half hour of receipt
* For the other incident, a tech was dispatched TO MY HOUSE the next afternoon to diagnose and fix the issues
Experience with Apple support:
* Call Apple's support number
* Do the whole service tag/serial number cross reference
* Do some on the phone troubleshooting, that included placing my installation media in the CDROM
* Get told, "you have to take it to the local Apple store, but there's no available appointments for the next three days. You could go in and wait for an opening, though."
* Drive down to the local Apple store, wait nearly two hours to see a "Genius" who, essentially, repeats everything I did on the phone with Apple's support line
* "Genius" checks in my MBP for further diagnostics and repair - estimated time to repair and return: no estimate given
* Somehow luck into getting it fixed and returned by CoB the next day
* Discover that the "Geniuses" have lost my installation media and am told I need to call Apple care and order a new one
* Call Apple care and order a new one
* Call Apple care, monthly, for the next four months before they finally ship me one
Yeah: Apple's service is the superior product...
I called Apple but was told I could get faster service going into an Apple Store. I went to my local Apple Store, gave it to them, and within an hour of hanging around the mall it was in, I was called back with a new hard drive, OS installed and updated, iLife and iWork put back on, and synced back my important (then named) .Mac files.
Now, I also work in IT, and we have some Dell Gold Support licenses, and yea, if a server hard drive fails, within two hours there's a new one here, in my office with optional installation help, but that also costs thousands of dollars (at least they're not my dollars!).
I guess Apple should have sent him the part and wished him luck like Dell did.
Next time you want to criticize someone else's reading skills, make sure your reading COMPREHENSION skills are up to par.
Our latest survey on computer tech support, conducted by the Consumer Reports National Research Center and drawn from our readers' personal experiences with 10,000 desktop and laptop computers, finds that Apple owners have much to smile about. Apple's tech support was able to solve Mac problems more than 80 percent of the time, according to those surveyed who used Apple's support.
My Dell 24" monitor had huge troubles so i called Dell. It was replaced very fast (thanks to UPS), but the "new" one was not perfect at all ()... and showed 9000 hours of use in the advanced panel. Of course, all parts haven't been used 9000 hours befor i get it, but i'm certain that none was brand new, that was pretty obvious... not so great.
@AppleRocks1963:
You are kidding right? People don't have to be tech savy to know how to update anti-virus. If my parents can use a PC than it is the simplest device. My parents in no way are tech savy and knows only to use Excel, Word, yahoo messenger, IE/Firefox and upload photos from Digital camera has been using the XP for over last 3 years without any issues. No reformatting, no virus, nothing. I was surprised in Jan when I used their 17' laptop. It still is as snappy as it was in the beginning (I know it because I gifted it to them). And, total cost so far is only the purchase price i.e. $899 + MS Office 2003 license that we already had.
These support requests are typically about slow computers (anti-virus/malware/adware takes care of the real problems and they know to back up their stuff), which on Windows, comes down 99% of the time to three things: hard disk fragmentation, excessive and unnecessary service installation (installed by Roxio, Microsoft, Adobe, even Apple), and low disk space.
Whenever I can, I have them get Macs instead.
Mac OS X's filesystem spaces out files to statistically reduce fragmentation, and reorders fragments on-the-fly to avoid ever having to run defragmentation software. Regarding service installation, OS X typically does support a similar mechanism, but I've only really seen it so far from the "big" companies, like Adobe. If OS X was ever used as much as Windows, I expect we'd see similar slowdown. Hopefully Apple (and hopefully Microsoft soon) will address this issue by giving background processes very, very low priority in the process scheduler, or maybe even doing away with those background processes (TSRs we called them in the DOS days) in favor of "hooks", so they can simply be notified when something occurs that a background process would typically care about (Roxio background service, e.g. waits for a disc to be inserted, something the OS can simply detect and launch a program _instead_ of wasting RAM having a separate, non-vendor program sitting, waiting around). And disk space is always a problem, both Windows and OS X have warnings against that, but what can you do?
true. it's nice to know people know when to butt out.
it's not like someone will come up with the perfect computer, because both Apple and Microsoft are flawed.
Apples can break (or get eaten) and PCs can break. Either way you'll wind up with a computer. How do I know? You're using one right now. My Dell (Inspiron 630m) hasn't had a single problem in the 4 years I've had it. Windows XP and 1 GB of RAM, and a 1.83 GHz processor. A Mac that's the same age has about the same for a couple hundred more $$. They come with iLife which alone almost makes it worth it for me.
At school we have those 4 year old iMacs (but we got them in January). Not a single problem. On my Dell, not a single problem. However, on my brother's Dell (Inspiron 1525, about 1.5 yrs old) the fan is making funny noises and the previous HDD is dead. At school we used to (before January 2009) use 2002 eMacs. One of them has a dead HDD.
See? Nothing is perfect.
In an unrelated tech incident, Netgear hubs have stupid power cords. It fell out of the socket halfway so noone noticed it except for the fact that 1/2 the computers had no internet.
2.-Since Apple does not have a Blu-ray option, I checked OWC (it's like Tiger Direct for Macs, for those who don't know). It has an LG $114.99
<A HREF=" http://eshop.macsales.com/item/LG/GGCH20L/"></A>
More to come!!
-I just upgraded to 4 gig of ram on my 2.8 GHz imac for $50??
-The real funny part is there is no antivirus/internet protection in the yearly costs.
I have to say that M$ must have chosen the mentally challenged for their advertising. The nos. above really don't make any sense for the average user. Finally, does anyone at M$ realize that a life without walls is also a life without WINDOWS!
You think PC buyers can't just buy ram for just as cheap?
No doubt that PCs have their taxes too. it's apples and oranges.
My experience is the PCs is they get dementia in about two years. Buying low end pcs virtually guarantees it. I'm not a complete expert but i have more experience than most. We have many g4 733's still in operation. All the pcs we have are newer and need to be replaced/have been replaced.
In the business world we don't mod our computers, we buy new ones. Repair parts cost on macs usually preclude repair. It's better to buy new. In about 200 computer years of operation, i've seen 3 mac power supplies go and god knows how many hard drives. One very old mac laptop screen went bad but it got abused. Virtually all the pcs have eventually become unusable in that they cost more to fix than buy new.
[CNET editor's note: Offensive comment deleted.]
It's true a lot of people don't want to pay good money for a good computer, even they shop around maybe they will find a nice deal on a PC, but you also have to put up with everything that comes with buying something cheap. We have 10 year old Macs in one area of my department, simply because they still work and the non-technical people using them don't care about computers. Our oldest PC is about 5-6 years old, and that's only because the budget doesn't allow for them to be replaced quite yet, but because they're still working fine. :/
How much does a computer cost, well it all depends why you are buying it and and what computer you are buying. Whether the computer has the Apple brand, or someone else's then a high end computer is expensive no matter where you go. Is the high end computer worth it? Well, only you can answer that with your budget and needs. A Mercedes might not be worth more than Honda Prius, but some people there is value there. Maybe the Mercedes should be cheaper, but while they have a market they aren't going to adjust their prices - computers are no different.
Each platform has its advantages and each has its set of 'taxes', its just that they are different. If you don't feel the taxes on a particular platform are worth it, then move on to what you like and don't complain.
Is Apple expensive? Yes, if your budget is a $300 machine, no if you are looking at something equivalent on a non-Apple brand - build-it-from-scratch is not equivalent.
Awesome. I lol'd.
Anyway all these apple tax, MS tax, etc. are lame
I chose ESET NOD32, which is better than Norton, better than most of the others, and way better than AVG Free or other freeware options. I wouldn't install free AV software, frankly. AVG Free missed a great deal of test material that both NOD32 and Norton caught. You do, in fact, get what you pay for.
NOD32 is what I use on Windows 7 beta (64-bit), on my Boot Camp partition, on my MacBook Pro, by the way. And on the 27 other Windows PCs I administer.
On the Mac side, I still don't see the need for AV software. And I come from a paranoid PC background.
then explain why Ubuntu is awesome
or why open office is a decent alternative to MS Office
or why all the browsers are actually any good
That is the most hilarious( and incorrect) statement I have read in a while.
All puns aside, apples to apples, people.
Claiming to be saving money but not bothering to include the 200-300 dollar cost of a new Windows OS non-upgrade, non-OEM. Which in your case neither would be legal.
Clearly your boss didn't know this or he could have found you a nice Dell for less than your Mac.
You obviously skimped on important items such as the case and power supply. Buying cheap parts doesn't make you special.
"whatever, i just built a 2.8 quad core with 4 gigs of ram and a 512 card and a 500 gig hd for 699, beat that apple fanboys, you'll never win the price wars, and by the way, i can go to dell and apples site and show you 9-10 times the dell is cheaper......" CHEAPER, wait till you get your first virus!
I don't give a sh|t about your hardware.. as far as I'm concern if its running Windoze, I ain't touching it!! MS is the worst piece of crap on the planet. I think hardcore Windoze fans should open up their bloody eyes and understand that MS only have itself to blame for Apple's success. I migrated over to Apple 9 years ago and have met countless other people who made the move to Apple for the same reason: Macs just work!! MS is soo much of a hassle! I used to build my own PC but it wasnt worth the trouble anymore after VISTA and Dell's nightmare customer service.
Being a PC hobbyist myself, I have no argument when it comes to PC's. My only problem is that almost every PC out there is running cr@pware from Windoze, and its giving PCs a bad name. I'm glad i made the move to Mac. I run a 3d visualization company, we have 15 Mac pros in the office and i cant remember the last time we have any problems with any of them. I may have to quit building PCs but its a small payoff. I value my time, data and quality of work, its the kind of 'TAX' worth paying and something MS WILL NEVER UNDERSTAND!
if he has no reason to have an expensive case, why should he buy one?
By the way, I'm typing this on a C2D, 17" laptop that came with a gig of RAM and a 80 gig HD that I bought in 2004 for $799. I slapped another gig of RAM, upgraded the SATA drive to 200 Gig and even ran OSX86 10.5 on it with the vanilla kernel that updated off Apples website. I'm running Ubuntu on it now, but XP and 7 work fine.
Why is the concept that Microsoft doesn't build computers so difficult for some Mac enthusiasts? Find me another instance where multiple companies fighting for my business is a bad thing?
You might be fine with single sourcing, but It's a bit of a wonder when almost any other product needs competition to benefit consumers.
I guess the iMacs are all-in-ones for your benefit, and not to keep people from buying them instead of Mac Pros. God knows how difficult it is to find LCD monitors.
Macs are the OPEC of the computer world.
Boeing and Airbus
Man, that was easy.
Boeing and Airbus"
There's nothing bad about this. Keep the humor up it's great!
Microsoft is stretching this cost thing a little too thin, and its going to come back and bite them if they're not careful. People know that PC's are largely commoditized and don't hold much value. The manufacturing companies have for years been struggling with low profit margins and flooded market channels (too many differing models to choose from from many manufacturers = customer confusion).
Here's what gets me is that now Microsoft is saying, "Hey, PC's are cheap. We're not cool enough or sexy enough to be Apple, but lets all buy crappy hardware with crappy software!"
How do the PC manufacturers feel about this? I'm sure they feel marginalized. Microsoft does have a history of eventually turning on their partners and competing with them.
As for stable and trouble free, again, I?ve been running some PC?s hard for years and not had any problems ( even had a Vista machine going for about 1+ year) so that argument is mostly moot. It all depends on the user. You don?t update your system, watch what you download, and what you do you?re going to get burned on any OS. Now I?m not saying that Macs aren?t a little better in this area, but that doesn?t make PC?s any worse.
Isn't that a contradiction in terms?
"even had a Vista machine going for about 1+ year"
And the fact that this is something you are bragging about speaks volumes...
It isn't about the actual service life of the hardware. If that were the case, then no machine, Mac or Windows, could come close to my trusty Apple IIgs, which ran completely trouble free for 20 years, then I simply had to get it off my desk. It's more about the *useful* life of the machine, and that can be a very subjective touchy-feely kind of thing. I bought my desktop Mac (1 GHz dual G4) and then bought my laptop Mac (1.33 GHz G4 12" PowerBook) a year later. Five years down the line, my laptop is feeling distinctly sluggish and "long in the tooth" and is begging for a replacement (Apple: Where's the firewire port on the MacBook?) while the older, slower desktop machine seems to be just fine. And while both machines are four CPU generations behind Apple's current hardware, both can run Apple's latest OS and most of their software in relative comfort. In fact, running Leopard on a 5-year-old Mac isn't a problem at all, while running Vista on a Windows box that was moderately high-end five years ago can be an exercise in frustration. To me, it's that issue of day-to-day usefulness that is a better gauge of longevity than mechanical durability.
Anyone can churn numbers to support their own point of view. The thing I find interesting is that MS feels it needs to go after Apple so hard. That to me speaks volumes.
- by canisreevus April 9, 2009 11:25 AM PDT
- First of all, the Mac Pro is a professional grade desktop that is way more than probably 95% of people will ever need. Using that as a comparison to some HP is like comparing a European sports car to a Pinto. Apple doesn't offer a mid-level desktop tower for comparison. The best comparison probably would have been with 2 Apple laptops vs 2 PC laptops.
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- by baconstang April 9, 2009 4:37 PM PDT
- HEY! I liked my Pinto.... but I luv my Macs.
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- by Renegade Knight April 9, 2009 5:20 PM PDT
- I think you are exactly bass ackwards. Mac played off the lack of technical knowledge of their users. They actually pandered to the less savvy and sold them on being different enough to be sophisticated.
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- by DrtyDogg April 9, 2009 6:30 PM PDT
- Even in the last generation Macs, Apple charged crazy high prices for RAM upgrads.
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- by johnqh April 9, 2009 9:39 PM PDT
- All vendors charge crazy high prices for RAM upgrades, even Dell.
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- by yreguy April 11, 2009 9:56 PM PDT
- @DrtyDogg
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- by sanjayb April 13, 2009 9:49 AM PDT
- "Side note: Quicken for Mac sucks."
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Showing 1 of 6 pages (228 Comments)Additionally, counting office software for the Macs and not the PCs is ridiculous (not to mention Apple's office suite is cheaper or the free OpenOffice). MobileMe is completely unnecessary, and there are free equivalents. Not to mention that anyone in their right mind would buy it for $69/year from Amazon. I haven't upgraded iLife since I bought my computer in 2006, and I don't see much of a need to. I didn't buy AppleCare and have had no issues. I'm not saying I recommend it, but the One-to-One addon listed is probably unnecessary. Also, why did he purposely choose more expensive peripherals only to jack up the price for the Apple computer? The fact that he even mentions DDR2 ram upgrades when DDR3 ram is standard on all Macs is just icing on the cake. These comparisons are always so overblown.
I used a PC until 2006 and have used a Mac since. I love my Mac and don't see myself going back to a PC. However, I'm not going to advise someone to buy a Mac if all they use is Windows software. IMO, Windows is simply playing off many computer purchasers lack of technological knowledge (or is it the less "technically savvy"?).
Side note: Quicken for Mac sucks.
You have a good point on the HP. A W or T series Thinkpad would be a better comparison to a pro.
Get it from Crucial. What's the big deal?
I just bought RAM for my MacBook- $20 for 2 gigs. I installed it in about 5 minutes and turned the computer on. install done, no problem. I can't imagine who in their right mind would spend $200!!!!!!! That's totally crazy!
This is one of the reasons why I keep Vista running on my Mac Book Pro. I am a heavy duty Quicken user.