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iPods, notebooks help Apple double profits
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As part of the launch, the Cupertino, Calif.-based company cut the price of its entry-level iBook G4 notebook computer and boosted chip speed across the line.
The new low-end iBook features a 1.2 GHz G4 chip, a combination drive that can play DVDs and burn CDs, and a 12-inch screen. It sells for $999--that's $100 less than the prior low-end model.
A midrange model features a 1.33GHz chip, a combo drive and a 14-inch screen, for $1,299. The top-of-the-line iBook sells for $1,499 and has the so-called SuperDrive, a drive that can burn both DVDs and CDs.
Previously, the SuperDrive had been available only as a configure-to-order option. "We think this is making the product quite a bit better, able to handle the consumer's complete digital life," said Dave Russell, Apple's senior director of portables and wireless marketing.
With the new iBooks, Apple's notebook lineup is complete for the holidays, said David Moody, vice president of worldwide Mac product marketing. Although the company typically doesn't comment on its future product plans, the pronouncement is Apple's way of dampening speculation that faster PowerBooks are on the way.
Apple has also added faster 802.11g wireless networking to all its iBook models, and Bluetooth is now an option on the whole range as well.
Although other computer makers, such as Dell and Hewlett-Packard, have laptops that sell at or below $850, the $999 price tag has long been considered a magic number in the notebook market, as far as generating consumer interest goes.
One potential challenge for Apple is that the faster processors and 802.11g wireless networking put the iBook closer in features to the company's higher-end PowerBook line. In particular, the changes encroach on the 12-inch PowerBook, which sells for $1,599 and includes many of the same capabilities as the beefed-up iBooks. The 15-inch and 17-inch PowerBooks have features not included in the smaller model, such as Gigabit Ethernet networking and faster FireWire ports.
Russell said these features and others, such as lower weight and support for a second display, will lead professional customers to opt for the pricier PowerBook. "We think there is differentiation," Russell said. He went on to note: "We're certainly happy if they choose any Apple notebook."
On the desktop
Alongside the update to its iBook line, Apple added a cheaper, single-processor model to its Power Mac G5 desktops, introducing a 1.8GHz machine for $1,499. With that addition, the company's desktop lineup is probably also complete, as it recently introduced updated iMacs.
Finally, Apple revamped its Xserve RAID rack-mounted storage system. The new Xserve RAID systems come in three models. The first features four 250GB modules and sells for $5,999. A midrange model offers seven 400GB modules for $8,499, and the top model offers 5.6 terabytes of total storage for $12,999.
"It's bigger, it's faster and more affordable," said Alex Grossman, Apple's director of server and storage product marketing. Grossman noted that the new systems cost just over $2 per gigabyte, down from about $3 per gigabyte on earlier Xserve RAID models.
The 400GB modules will become available as an option for the Xserve server, allowing owners to increase the storage on those models to 1.2 terabytes. Apple said it doesn't plan to bump up the 2GHz top speed of the machine's processors, even though it did ship some 2.3GHz servers to Virginia Tech for that school's supercomputer.
"Virginia Tech was a one-off," Grossman said. "That is not something we have planned or announced."
The product news follows Sunday's price cut from Intel, which supplies computer chips to a majority of Apple's rivals. Intel has also ramped up its efforts to stimulate holiday sales. The chipmaker lowered prices on its flagship mobile computer chips, including its Pentium M processors and its Centrino bundle.
The fourth quarter of the calendar year is historically the most profitable for computer hardware makers and for many other consumer products companies.
What happen to the customer? Try providing the customer with something they can acutally use instead of the mantality of just buy any apple. Just another example of how lame apple really is. I'm so glad I "switched" back to windows based machines.
planet to prefer Windows over anything.
First: I think you are taking a small statement & blowing it way
out of proportion. If you go to any Apple Retail Store, the staff is
encouraged to listen carefully to the customer & ask a lot of
questions. This enables them to provide the "best client system
solution" possible - not over sell or under sell, since they are
NOT on commision.
Second: What every platform is your best solution & platform of
choice is fine. What works best for anybody to solve their
problems is great.
Third: NO one platform is the best at solving all your problems,
unless you are a very computer task limited person who rarely
uses a computer.
Fourth: 50% of Apple Retail Store sales are to "switchers" or
"adopters" of Macs, so that 95% figure is simply not possible.
That would leave 5% for ALL the other computers (Apple/Sun/
SGI/Linux/Open Source/Java) So that doesnot add up either.
Fifth: When software is Mac/Win capable, the sales of that
software are counted as PC/Win sales.
Sixth: Millions of people have Macs at home & schools. The 95%
figure is only for professional business / office computers.
Seven: BMW/Mercedes/Volvo/Lexus/InfinityHummer/LandRover/
Porche ALL HAVE LESS marketshare than Apple has in
computers. Good company. You can hang around with Michael
Dull dude...
-Eyes wide open in Seattle-
Microsoft. Every day millions of people put up with security
flaws, confusing software, and technology that is harder to use
than it should be as a direct result of Microsoft. Consider this:
when I connect to a network (which takes about 3 seconds -
literally) on my Mac, it automatically finds any other Macs on the
network and can, without any additional software, share files
with them, share printers with them, chat with them, share
photos and music with them, and more, and I don't have to enter
a single IP address. Why, if Microsoft spends 10x Apple on
research, can they fail to come up with ideas like Exposé,
Rendezvous, or just an all-around easy to use interface? Make
all the excuses you want - if Microsoft hadn't locked everyone
in, competition would set in and soon Microsoft would be down
to Apple's marketshare numbers today.
about differentiation as Apple says. I just bought a refurbed
iBook from store.apple.com. The differences are about price
discrimination. Apple knows that some people will pay more for
non-mirrored video, for the DVI connector, for a larger hard
drive. The PowerBook puts those features into aluminum for
$1,000 more. I think economists might call this 3rd degree
price discrimination.
- Details are Optional
- by crescentdave December 30, 2004 11:56 PM PST
- Re: the $999 model: love the lack of actual specs. Size of hard drive? Speed of hard drive? Cached or not? Speed of CD burner? Assisted graphics? Connectivity (how many usb/firewire ports)? Room for expansion?
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(10 Comments)12 inch screen. That's rough baby. Real rough.