So I think we come back to "there's no reason why they couldn't", but  
why haven't they?  Is there something preventing Dell & HP from doing  
this? Are they too wedded to their corporate customers to properly  
serve the consumer market? Is it just a perception that there *aren't*  
any high margins to be made in computers until Apple came along and  
showed us all it's possible?

And yes, I've often thought of starting a computer company to do just  
exactly what you describe, but I know absolutely zip about hardware  
and I don't have the 100M$ it would take to start such a company.


- J

On Sep 3, 2008, at 3:17 AM, Reinier Zwitserloot wrote:

>
> I blame the top brass at all PC companies, except Apple.
>
> If Dell wanted to, they could produce a notebook that:
>
> - Had no crap software pre-installed and came with solid hardware
> guaranteed to have good drivers for linux. You can choose windows or
> linux. The price difference between those choices is just not
> relevant. It's about the hardware.
>
> - Had a well designed case that doesn't creak. One of the things that
> really annoys me about dell notebooks is that they feel like they
> could fall apart at any moment. They don't, but that doesn't help me
> when I cringe every time the plastic creaks when I stuff one in a bag
> or lift one up while its open.
>
> - Introduced a host of features even apple doesn't have: A black and
> white screenmode (copied from the XO specs, which are, after all,
> 'open source'), where readability -improves- in direct sunlight. You
> can even spin this notebook as a 'lifestyle choice - let all those
> other idiots wither away in offices, you're out in the sun!' without
> seeming like a blowhard marketing jackass. There's no real equivalent
> to the macbook air (full size, but light, even at the cost of ports
> and the CD drive) in the PC market at all. Why isn't dell or sony
> releasing one? Even a half arsed attempt would get some buyers. There
> have to be people out there that want the options of a macbook but
> don't buy apple. So far I haven't seen anyone that seriously buys
> apple hardware and then installs windows on it, even though you
> clearly can. Add a really good set of speakers (meshes nicely with the
> outdoors theme). You're lagging apple's research, but do your best to
> put as good a keyboard and trackpad as you can manage on the device.
>
> - Has a shiny name, and no serial code (no X500 stuff), and a unique
> design aspect. If you're going to build a notebook that differentiates
> on immeasurables, you need to make sure people take notice of the
> success in the field. You can't trust just the ads as a consumer, and
> you're now targeting people that do not care only about the Mhz, MB,
> and screen size. I think this bit is something they all missed. Yes,
> marketing departments try to add some differentiating gimmicks from
> time to time, but I never get the feeling that a company's heart and
> soul has been poured into coming up with a functional, yet unique
> design. They simply don't get that this is important if you want to
> elevate yourself above the spec rat race.
>
> You said it, Joshua: There's no reason why they couldn't do it. The
> only way I see this changing is with upstarts. The software startup
> market is getting a bit saturated, and I think this is a -great- area
> to operate in. It's hard to get good deals for parts as a small
> company, and it's even harder to custom-build notebooks, but at this
> point dell, sony, HP, lenovo, and the rest is starting to get a bit
> scared of apple's notebook market, and they are frothing at the mouth
> thinking about how much they'd make if they could take a significant
> piece of that pie home. If you can sell a few notebooks with the right
> properties at ridiculous prices (because you're paying far too much to
> order the parts, as a small company, and you need far bigger profit
> margins), one of those big manufacturers might make like dell/
> alienware and buy you, knowing they can slash the price without losing
> any margin, and make millions. There's your quick exit.
>
> I'm already helming a software startup, so for me the timing isn't
> there. For any other reasons: What's your excuse? :)
>
> On Sep 2, 9:35 pm, Joshua Marinacci <[EMAIL PROTECTED]> wrote:
>> No. The question is why do HP and Dell only make low margin (often
>> crappy) computers, and struggle to turn a profit, when Apple is able
>> to make 20->30% margins on products that are functionally equivalent
>> (desktop and laptop PCs that do the same basic things from a consumer
>> perspective).  This is a very interesting economics question that, I
>> think, reveals a great deal about how computers are manufactured and
>> sold, and suggests new opportunities for the existing hardware makers
>> (or opportunities for new upstarts).  Or it could reveal barriers to
>> fixing the problem, such as certain features of the MS Windows
>> monopoly that discourage creating Mac like computers.
>>
>> I find it an interesting topic. :)
>>
>> - Josh
>>
>> On Sep 2, 2008, at 12:28 PM, Alexey Zinger wrote:
>>
>>
>>
>>> But what is the question that answer is for?  Is it that there
>>> aren't enough easy ways to get a high-end laptop?  Or that there
>>> aren't enough choices in the high-end laptop market?
>>
>>> Alexey
>>> 2001 Honda CBR600F4i (CCS)
>>> 1992 Kawasaki EX500
>>> http://azinger.blogspot.com
>>> http://bsheet.sourceforge.net
>>> http://wcollage.sourceforge.net
>>
>>> --- On Tue, 9/2/08, Joshua Marinacci <[EMAIL PROTECTED]> wrote:
>>
>>>> From: Joshua Marinacci <[EMAIL PROTECTED]>
>>>> Subject: [The Java Posse] Re: Mac vs PC - $1075 premium for a
>>>> comparable Mac
>>>> To: [email protected]
>>>> Date: Tuesday, September 2, 2008, 2:59 PM
>>>> So then it seems the answer is to turn computers into a more
>>>> consumer
>>>> friendly buying market. ie: reduce the number of available
>>>> models,
>>>> give them better names, maximize compatibility with the
>>>> most common
>>>> hardware/software/network-infrastructure/devices, then
>>>> focus on
>>>> advertising a few core features that are differentiators.
>>>> This makes
>>>> the choice an easier one for consumers by effectively
>>>> making the
>>>> computer a simpler choice (at least in terms of buying
>>>> one).
>>
>>>> Clearly Apple has done this, so the question is why
>>>> hasn't anyone
>>>> else. It doesn't seem like it would be that difficult.
>>
>>>> - J
>>
>>>> On Sep 2, 2008, at 11:40 AM, Alexey Zinger wrote:
>>
>>>>> Coke and Pepsi have spent untold amounts of money on
>>>> advertising and
>>>>> continue to be at each other's throats, both with
>>>> their flagship
>>>>> brands and new ones (Gatorade vs Powerade).  But soft
>>>> drinks are a
>>>>> lot simpler for the consumer to think about than
>>>> computers.  For
>>>>> one, computers encompass software, hardware, and
>>>> surrounding
>>>>> infrastructure (network connections, devices they
>>>> integrate with,
>>>>> etc.).  And those things can change independently from
>>>> model to
>>>>> model, from year to year, from place to place.
>>>> It's tough to nail
>>>>> down what features you can push on the consumer as THE
>>>> answer to why
>>>>> they should pay extra, when the consumer may not
>>>> understand it, may
>>>>> not care, or may be using your product or some of your
>>>> products in a
>>>>> totally unexpected way.  Just think of iTunes running
>>>> on Windows.
>>>>> Is it good for Apple because it brings iTunes Store
>>>> revenue, or is
>>>>> it bad for them because it reduces the need for some
>>>> people to
>>>>> switch brands.  Is it good for Apple
>>>>> because it shows Windows users how different Apple
>>>> software can be
>>>>> or does it detract people from Apple's products
>>>> for the same
>>>>> reason?  I think the fact that Apple has to some
>>>> extent infiltrated
>>>>> the hipster generation and made it a bit of a status
>>>> symbol is quite
>>>>> remarkable.
>>
>>>>> Alexey
>>>>> 2001 Honda CBR600F4i (CCS)
>>>>> 1992 Kawasaki EX500
>>>>> http://azinger.blogspot.com
>>>>> http://bsheet.sourceforge.net
>>>>> http://wcollage.sourceforge.net
>>
>>>>> --- On Tue, 9/2/08, Joshua Marinacci
>>>> <[EMAIL PROTECTED]> wrote:
>>
>>>>>> From: Joshua Marinacci <[EMAIL PROTECTED]>
>>>>>> Subject: [The Java Posse] Re: Mac vs PC - $1075
>>>> premium for a
>>>>>> comparable Mac
>>>>>> To: [email protected]
>>>>>> Date: Tuesday, September 2, 2008, 1:37 PM
>>>>>> But why is this the case?  There are plenty of
>>>> essentially
>>>>>> 'commodity'
>>>>>> products that have monopolistic competition and
>>>> don't
>>>>>> eventually
>>>>>> collapse to 0% margin.  Coke and Pepsi sell for
>>>> many many
>>>>>> times the
>>>>>> price that pure costs would suggest.  Automobiles
>>>> are
>>>>>> functionally
>>>>>> equivalent in that any given category has the same
>>>> basic
>>>>>> features (all
>>>>>> 4 door sedans will carry 4 or 5 people, all pickup
>>>> trucks
>>>>>> will carry
>>>>>> furniture and dirt, etc.).  And yet BMW has
>>>> clearly figured
>>>>>> out what
>>>>>> things to improve in their cars that will convince
>>>> someone
>>>>>> to spend
>>>>>> twice as much or more for a 4 door sedan, even
>>>> though it
>>>>>> doesn't cost
>>>>>> them twice as much to produce (thus raising their
>>>> profit
>>>>>> margin).  So
>>>>>> what have car and sugar water makers figured out
>>>> that
>>>>>> computer makers
>>>>>> haven't? Is there something intrinsic to
>>>> computers that
>>>>>> resist product
>>>>>> differentiation?  Clearly Apple (and to some
>>>> extent Sony)
>>>>>> have proven
>>>>>> that it's not completely impossible.
>>
>>>>>> - Josh
>>
>>>>>>> My take on this is that most people don't
>>>> care
>>>>>> about those certain
>>>>>>> ethereal features, such as "overall
>>>>>> experience".  Maybe it makes
>>>>>>> sense to care about that, or maybe it
>>>> doesn't, but
>>>>>> just like
>>>>>>> airlines are starting to feel a new hurt of
>>>> competing
>>>>>> on price and
>>>>>>> specific features alone because of the
>>>> internet and
>>>>>> product search
>>>>>>> engines like Google Products/Shopping,
>>>> it's harder
>>>>>> and harder for
>>>>>>> anyone to demand a higher price without an
>>>> extra
>>>>>> number of checkmark
>>>>>>> to justify it.  The only other thing that
>>>> people seem
>>>>>> to be willing
>>>>>>> to pay for is brand name.  Besides, no one is
>>>>>> impressed with a fancy
>>>>>>> laptop anymore.  Long live fancy phones! (for
>>>> now)
> >


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