On 14 Aug 2006 at 17:52, Darcy James Argue wrote:

> FWIW, here's MacWorld's Mac Pro vs. Dell price shooutout:
> 
> <http://www.macworld.com/2006/08/features/macproprice/index.php>
> 
> They used a different model Dell than I did (Precision 690).  
> Apparently the reviewer felt that the 490 I used "isn’t really  
> comparable to the Mac Pro in terms of expandability."
> 
> An interesting and perhaps relevant passage:
> 
> > What makes the Dell so much more expensive? Surprisingly, a big 
> > chunk of the cost is the second processor. If you need only a 
> > single 2.66GHz Xeon, the Dell’s price drops a whopping $869; it’s 
> > still more expensive than the Mac Pro, but at least they’re in the 
> > same ballpark. Which means one of two things: Either Apple is 
> > getting an amazing deal on the Xeon processors used in the Mac 
> > Pros, or Dell is soaking dual-processor customers.

I don't know why anyone should be surprised at this. 

Apple is making this high-end workstation the base model for their 
high-end product line. Dell is selling it only to a tiny number of 
customers who are buying in the workstation market. I don't know what 
percentage of Dell customers buy this product line, but my guess is 
that it's not a very large group. One could finagle the market share 
and customer numbers to try to come up with a situation where Dell is 
buying more Xeon processors than Apple, but I don't think it's likely 
that the chips used by Dell in this product line are purchased in 
numbers as high as those that Apple will be purchasing.

Secondly, Dell is already a captive of Intel, while this may very 
well be part of the continuing deal that Apple made with Intel to 
make the switch. Intel may be subsidizing part of the price here to 
help Apple make the transition. Then again, maybe not, as that would 
probably violate the Sherman Anti-Trust Act.

The point is that a dual Xeon workstation on the PC side is a very 
very rare purchase, whereas Apple is making it the flagship model at 
the top of their product line, with nothing really comparable to most 
of Dell's product line anywhere else. That is, Dell is selling into 
different market segments than Apple, so the cost basis for their 
purchases from Intel is likely to be different.

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


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