Category: computers

  • Why a cheap Mac netbook would be a mistake

    AppleInsider is speculating about the possiblility of a $599 Mac netbook.

    If Apple were to do this it would be a strategic mistake and damage their business.

    The key to the Mac’s success is the point of difference they have to rest of the computer market. This difference allows them to achieve higher margins.

    If Apple want to get down and dirty with Asus, Dell and HP they’ll find their products and margins will be dragged down with to their levels.

    What’s more, it’s a marketplace they won’t win as other players have better low cost models. For instance, no other brand has a successful worldwide chain of branded stores.

    The idea driving the netbook push is “Apple can’t justify charging double”. That’s true and there’s no doubt Apple have been overcharging in recent times. So there is room for some price drops.

    But cutting prices to meet other people’s price points would be a suicidal move from Cupertino.

    A far more sensible strategy is to accept sales are going to drop and focus on their core market, sacrificing a bit of margin won’t hurt either. 

    Sure, Apple’s profits will take a hit but they’ll still be profitable while their competitors struggle to make pennies on $500 systems.

    This is the key to survival in the downturn, not mindlessly slashing your throat to meet artificial price points.

    It’s a lesson for all businesses in this economy. Focus on your core market and your margin. Giga Om has a good guide to “competitive differentiation”.

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  • Is it time to upgrade to Vista?

    This is a presentation I gave earlier this year to the Forest Computer Pals group.

    We looked at the pros and cons of Vista and whether it was worthwhile for people to make the jump to the newer system.

     

    Is It Time To Upgrade To Vista

    View SlideShare presentation or Upload your own.

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  • Second hand PCs

    Gartner reports that less than 50% of second hand PCs are making it into the resale market. I’m surprised it’s that many given the restrictive software licensing, particularly for Windows.

    I imagine the supply is going to dry up even more over the next few years as people start to hold onto their computers for longer.

    Where we’ve seen business computers last three to five years I expect we’ll see the life of office and basic home PCs blow out to eight to ten years.

    There’s three reasons for this; web based applications, little innovation and the recession.

    The recession is a no-brainer. As I posted previously, computers purchases are deferrable and as money gets tighter users won’t replace them until they are throughly flogged.

    This isn’t such a bad thing for users as there’s little compelling reason for buying a new computer if the current is working fine. For the majority of users who surf the web, type letters and do the odd spreadsheet they could get by with an eight year old computer.

    Running eight year hardware becomes even easier if you’re running web based apps. As long as your system can run a reasonably modern browser, all the rest will follow.

    This raises big problems for the bigger vendors. They are going to have offer some pretty compelling reasons for buyers to junk their old systems.

    In the meantime, buyers of used systems might find the market remains tight.

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  • More bundled laptops

    Further to Saturday’s post, I’m researching my story on wireless Broadband for tomorrow’s Smart Company column and I find Telstra are still offering the $0 laptop.

    I thought it had been dropped. It’s amazing this offer gets no mention at all.

    Gee it’s hard to make sense of Telstra’s website.

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