On 8 Aug 2006 at 12:28, Johannes Gebauer wrote:

> On 08.08.2006 dhbailey wrote:
> > And your point is . . .?   :-)
> 
> Well, I think what Darcy is trying to say is that Apple currently
> offers the best value, branded Windows machines of a certain
> configuration. Which in itself is quite amusing.

I don't see it as surprising at all. Apple is surely one of Intel's 
largest customers now, and thus can get good volume discounts.

> I am sure that is going to change, though. Some PC vendor is going to
> bring out a similar machine for less money. . . /

I don't think it is going to change.

Apple is mass manufacturing this machine, whereas for Dell, it will 
never be more than a niche market. Apple can afford to sell the 
machines for less because they are making more of them than Dell.  

> . . . After all, Dell is not
> necessarily a cheap manufacturer, or are they?

Dell has this strange repitation for being more expensive, but I've 
never even once found that to be true once you do a head-to-head 
comparison of similarly equipped machines. I used to have clients 
come to me and ask why their Dell quote was $300 more than this 
Gateway/HP/Compaq/IBM/whatever they saw advertised. I'd then 
configute the other machine to match the Dell quote I"d created for 
them, and ALWAYS, the Dell ended up to be $100 or more cheaper.

Dell machines in general have base configurations that are more 
expensive than their competitors. But that's because Dell is more 
sensible in designing their base configurations, starting with better 
quality and higher performing components. Because they design their 
base systems this way, they can offer higher quality/performance at 
relatively low prices within their own product line, even though 
compared to other OEMs, their base machines may be more expensive.

In a certain sense, Dell is to other PC makers as Apple is to the PC 
market -- the basic machines start out with better design and thus 
cost more, but you're getting more for your money, and when you load 
up the "cheap" competitor with components comparable specifications, 
the "cheap" PC often ends up more expensive. This is almost always a 
result of volume pricing -- the bigger manufacturer has the ability 
to choose higher-quality components for their base models.

I'm still shocked at the changes in recent PC prices. You can now buy 
a Dell machine for home use that will be a great 5-year computer for 
under $900, including monitor and basic MS Office. Only 3 years ago, 
the price point for this same machine was $1500, and 5 years ago, 
$2000.

-- 
David W. Fenton                    http://dfenton.com
David Fenton Associates       http://dfenton.com/DFA/

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