The Mac mini: Comparing Apples and Oranges

MacWorld: MacCentral ^ | 1/18/2005 | By Dan Frakes

[Swordmaker]

For years, people have criticized Macs for being more expensive than Windows PCs. Although at one time that was the case, those of us in the know realized a couple years ago that when you look at comparably equipped Macs and brand-name Windows PCs—that is, once you add the hardware features and software to a Windows PC that come stock on a Mac—the differences in price are much smaller, if they exist at all. This aspect of “price comparisons” has been lost on many tech pundits and analysts (as is the fact that Macs generally come with an excellent software bundle unmatched on budget PCs).

Now, to be fair, one of the rebuttals to the above argument has always been, “Well, what if I don’t want all the extra features that come stock with the Mac? What if I just want a cheap, limited computer?” And it was a valid point. But with last week’s announcement of the new $499 (see Best Current Price) Mac mini, Apple undercut that argument something fierce. Now Mac users, too, can get a stripped down computer for a lot less money.

But it was only a matter of time before someone would argue, “It’s still not price-competitive with the cheapest Dell.” And within days we’ve got our first such columns and articles, all of which leave me scratching my head, wondering if these guys are as bad at comparing products when they shop for themselves as they apparently are when comparing products for their columns.

The first one I came across can be found at the popular online investment site The Motley Fool; it includes this shot across the mini’s bow:

Mac fans who’ve been sipping Steve’s Kool-Aid have often claimed that price—in addition to various Microsoft conspiracies—is the only thing keeping the masses from switching to their favorite brand, but take heed. Even if that were true, a quick online check shows you can get a comparable, full Dell system for $450...I’m also pretty sure Ma and Pa Kettle can do the third-grade math that escapes the headline writers for now, which shows the cheapest Mac system you can build around this thing is still 78% more expensive than a comparable PC.

(I’m assuming the “78% more expensive” comment refers to a system with a $999 Apple display and a $58 keyboard/mouse bundle, ignoring the fact that the Mac mini can also be used with the least expensive such peripherals on the market—a savvy shopper could get a 17” CRT, mouse, and keyboard for ~$70.)

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This is an excerpt. Read the ORIGINAL ARTICLE

[solitas]

No, it's not for a cluster, just for a colocation. You'd probably have to build some USB to Gigabit bridge to even try clustering, and then I don't think it'd be as efficient as a rack of XServes.

Yah - but compared to an equal numbers of X's it'd be a hell of a lot cheaper! Probably worth whatever efficiency you'd get out of it.

I wonder if the same universities and gov't agencies that are running parallel X's and G5's will try any experimentation with the cheaper minis?

[Swordmaker]

Except it's not a $499 computer. It's a $800 computer, when you add in the price of a monitor. That's what needs to be compared.

READ the article Bush... the monitor that came with the Dell is allocated cost of $40... not $300.

[Bush2000]

READ the article Bush... the monitor that came with the Dell is allocated cost of $40... not $300.

LMFAO! Yeah, show me a monitor for the Mac that costs $40. Like I said, we're talking about an $800 Mac.

[Swordmaker]

LMFAO! Yeah, show me a monitor for the Mac that costs $40. Like I said, we're talking about an $800 Mac.

Refurbished 15" SVGA Monitor for $39.95

This one is refurbed and is available in quantity. I have seen brand new ones for the same price lately. However, while it is a little more than the specified $40, the best deal is this one from OfficeMax:

NEW! 21"SVGA XVGA Monitor for $54.99

Both of these will work quite nicely with the Mac Mini.

[Swordmaker]

How about this one for $29.95

[Swordmaker]

OH, these can work with that cheapy Dell also... so the comparison still holds.

[Bush2000]

I was talking about Apple -- and you know that. Try again. Most consumers aren't going to buy their computer and monitor from separate vendors. They want a package deal.

[Mr. Blonde]

Most consumers have a monitor already that would be compatible with the Mac. So the price is something like $0.00. That isn't too bad.

[antiRepublicrat]

It's a $800 computer, when you add in the price of a monitor.

$800? The monitor that ships with the cheap Dells doesn't even cost half that.

[antiRepublicrat]

Apple always overcharges for extra hard drive and memory. Buy some good RAM and hard drive someplace else and take a few minutes to install them (including time to open and close the case). You'll save a few hundred dollars.

Also, the Mac has excellent sound, including optical input and output. You also overspent on the Mac's video card, since that is a special card only necessary if you want to run the monster 30" flat panel.

Dell sells a 20-inch, so you could have upgraded to that for the comparison.

[Swordmaker]

... was talking about Apple -- and you know that. Try again.

You spend more time moving goal posts, Bush... Someone meets your dare and you say "Oh, that wasn't what I meant. I meant (insert some absurdity)."

Apple's current low model monitor is the 20 inch Cinema Display at $999.00. The Mac Mini can drive it with no problem. BUT it would then be a $1498 computer. If anyone wants to spend that much, they should get the 20" G5 iMac...

[Bush2000]

Apple is trying a ploy that won't really make much headway in the market, in my opinion. They're counting on people switching from Windows to Macs -- by keeping their peripherals (ie. monitor, keyboard, mouse, etc) and simply buying the little Mac box. The theory is that the Apple Mini would be more competitive against Dell. But that's a flawed marketing strategy -- and here's why...

Based on the marketing data that I've seen, the vast majority of people buying computers don't build their own -- or purchase stuff from multiple vendors. They tend to get everything as a package deal from a single vendor. Most people tend to hold onto their computers for 4 years or more. One of the fastest growing segments of purchases is LCD monitors. People aren't hanging on to their old monitors. They're replacing their crappy old CRTs from 4 years ago with brand new LCDs. They get a lot more screen real estate for their money, they take less desk space, they're more energy efficient, they spew far less radiation in your face, and the scan rate is sufficient for modern games.

So, the real question is whether people are going to buy their new computers from Dell ... or Apple. For the low end buyer who already has a computer, Apple really isn't giving him or her all that much. He or she still has to essentially throw away their Windows software and purchase brand new software for the Mac. Depending on how much software he or she already owns, that could end up costing hundreds of dollars more -- which affects the value equation.

For the mid-range buyer -- the one who wants a new LCD monitor -- you can be reasonably certain that he or she will be able to find a less expensive LCD panel from Dell than they will be able to get from Apple. Because, remember, people don't buy their computers piecemeal. Most of them either don't know how or don't care to do so.

[Tribune7]

I'm using a 10-year-old, Sony 17-inch work-surplus monitor on my G4. It does the job.

[avenir]

Thanks for the input.

I find these comparisons to be very unreliable, and I was using a Dell catalogue vs. the Apple website! I'm not sure that a clear comparison is possible in the fast moving world of computers.

Apple users prize OSX and think it is worth far more than the retail price, to give one example of an intangible concept of "value". I get the impression that they think $499 (for the Mini) isn't too much just to have the priviledge of getting a foot in that wonderful world of the Mac OS (upgradeability be damned).

As for any $4K-up computer, I find such an expenditure ridiculous unless you make your living with it. Some people have money to burn, but I know some rich people who would balk at blowing that much loot on a computer.

[avenir]

That was a nice post, Bush.

[Bush2000]

Thanks. Don't get me wrong. I wish Apple luck in their new venture. After all, they're trying something new. It's quite possible that they may attract sales from people who are interested in adding a 2nd or 3rd computer -- but don't want to invest a whole lot.

[HAL9000]

I think we're going to see a lot of old Dell LCD monitors attached to to the $499 Mac Minis.

[HAL9000]

Apple officially started selling the Mac Mini yesterday.

[af_vet_rr]

I made the "mistake" of being near the Apple Store by where I live (my wife doesn't think it was a "mistake"). The place was packed, and quite a few people were walking out with Mac minis. I couldn't tell how many were first time Mac owners (or returning Mac owners), but I heard a few people here and that were clearly new.