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To: Swordmaker

If Apple was smart they’d just start selling the OS to others and offer an update subscription service. Software is much more profitable than hardware.


20 posted on 05/21/2009 12:32:10 AM PDT by Nateman (If liberals aren't screaming you're doing it wrong.)
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To: Nateman
If Apple was smart they’d just start selling the OS

Then you couldn't control how it works. And that it works is what Apple is all about.

They don't sell low end. They have more net profit than Dell on a whole lot less units.

22 posted on 05/21/2009 2:05:43 AM PDT by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
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To: Nateman
If Apple was smart they’d just start selling the OS to others and offer an update subscription service. Software is much more profitable than hardware.
Apple's business model is not Microsoft's, and Apple is fighting these court battles precisely for the right to maintain their high-end model - they design elegant-appearing and good quality hardware, and they sell that hardware at a premium price. Part of what supports their pricing is the quality of OS X which is bundled with the Mac, and the fact that OS X may not legally be run on anything but a Mac. And, of course, the fact that purchasers of new Macs rely on the example of the owners of older Macs being able to upgrade to ever-improving versions of OS X for a reasonable price, and they assume that they will be able to do the same in a year or two, if they want.

These clones actually are an attack on the ability of Apple to maintain that strategy instead of switching over to direct competition with Windows on Microsoft's business model. And I almost wouldn't put it past Microsoft to be behind that effort to commoditize Macs. That certainly is the thrust of Microsoft's price-only comparison ads between Macs and PCs.


24 posted on 05/21/2009 5:41:50 AM PDT by conservatism_IS_compassion (The conceit of journalistic objectivity is profoundly subversive of democratic principle.)
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To: Nateman
Software is much more profitable than hardware.

Yet another falsehood - at least with Apple's very profitable business model. Apple tried the licensed "clone" avenue for a time - it just about killed them. To compete with the clone makers, they had to drop hardware quality (though they never stooped to pure commodity parts). It was a nightmare on many sides - from Apple trying to support hardware from many companies that used cheap or marginal parts - then threw it to Apple to support it since it was the OS that choked on the crap. Apple lost sales of hardware, which was their foundation. And consumers got jerked around when clone makers went belly up and the eventual closing of the clone licensing. Apple's OS reputation was damaged by the clones and their affect...

I think Apple's current business model is working well, as they are by far the most profitable computer manufacturer. Now with 10%+ market share (and higher in the notebook category), Apple swept every category in the recent Consumer Reports computer testing.

Wile I am as budget conscious as anyone, I am willing to pay a premium for something better. This isn't only related to the OS, but to Apple's overall better-built hardware.

40 posted on 05/21/2009 8:30:52 PM PDT by TheBattman (Pray for our country...)
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