Brian Bober

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A funny thing happened to me on the way to the Apple (AAPL) store. I picked up the latest copy of Information Week magazine and read an article about the HP (HPQ) Voodoo Envy 133. Long story short, I’m no longer going to the Apple store. I’m waiting for the Envy.

Vista Woes

After a painful year running Vista (MSFT) I want need a dependable lightweight laptop with amazing battery life. So I did the once unthinkable: considered getting a Mac. In the past two weeks I’ve visited the Apple store twice to checkout and ask some questions about the Mac Air. I would have bought it the second time, but it was the South Beach store and it seemed the price was a couple hundred dollars higher than in Dallas (no surprise there).

While many rave about the OS X, and I have no doubt it is better than Vista, corporate types like me simply need some applications that do not run on the Mac; and I want to avoid dual boot (granted VMware (VMW) does have a better solution). However, since I could do 90% of my work on OS X I was willing to get a Mac as a second mobile laptop primarily due to the amazing battery life.

Apple’s Killer Products

Apple has re-built their business this decade on the back of its product designers. Their sleek integrated products simply blew away the competition. Their best two products the MacBook and iPod have driven astounding growth.

The iPhone looks like it may be a third category killer. Granted, Apple has some pretty powerful competitors to overcome like Nokia (NOK), Samsung, Sony (SNE), Motorola (MOT) and HTC. I don’t include Research in Motion (RIMM) because in a couple years battery life will reach a point where the last feature (RIM’s battery efficient devices) Blackberry dominates will be a non-issue. Since practically every other phone supports ActiveSync, IT departments will finally be able to jettison the extra cost of maintaining a Blackberry server. Soon, when Apple releases its 3G / ActiveSync iPhone for $199 its sales should sky rocket. Although, how long can Apple maintain its lead in the cell phone market? Probably the most cut throat product market.

The iPod is still head and shoulders above the other MP3 players. In fact, I just bought my second iPod Nano a couple months ago. However, this market is leveling off as it is becoming more common to find people with even multiple MP3 players. The HDTV / LCD market is commoditizing like the original TV market did. You can see this at any Best Buy store or even at Dell’s (DELL) Northpark mall store. This is making Apple’s nice sleek desktop models look comparatively less impressive. Especially when doing a side by side comparison at the Best Buy stores that conveniently now offer Apple computers.

Mac Attack

So back to the Mac, the heart of Apple. The MacBook is a solid product, but I just saw a Gateway laptop at Best Buy for less than $900 that included 4GB of memory and an Intel Core 2 Duo – undoubtedly very competitive with the Mac book. It is amazing how more power can make up for many of Vista’s issues. The Mac Air has been the wow product. While this year the Air has faced stiff competition from the Toshiba Portege R500 and the Lenovo ThinkPad X300 the HP Voodoo Envy 133 ups the bar compared to everything in the market right now.

It has features the Mac Air is clearly missing like a removable battery and more than one USB port, but the amazing part of the Envy 133 is its design. Its appearance is cool. It has a removable battery. It has a removable battery (repeated for emphasis). It is .7 inches thick. It’s sturdy due to its carbon fiber chassis. It has introduced a few new design elements that upon seeing them just appear to be common sense, such as putting the Ethernet port on the power connector. It has an HDMI port. It has instant access to Skype and an Internet browsing through the Voodoo IOS.

Rahul Sood may have bested a fragile Steve Jobs and made Voodoo HP’s Lamborghini. I don’t expect Apple to stumble any time soon. They still have a stranglehold on the MP3 player market; with no end in sight. They still are releasing a game changing iPhone while competitors aren’t innovating but instead copying Apple. Which Nokia appears to admit.

“I don’t know what is copy and what is original but if there is something good in the world we copy with pride.”

Windows Vista is finally getting to the stabilizing service pack time frame and despite prevailing wisdom the MacBook and OS X have not been completely without defects either. Windows Vista is still a very disappointing product that will be skipped by most enterprises. However, Apple doesn’t offer anything close to true enterprise client management software. If enterprises migrate from Windows they are more likely to embrace a Linux based thin client than OS X. Now if Apple decides they want to move to the enterprise by purchasing Sun Microsystems (JAVA), things could get interesting. That doesn’t seem to be the direction Apple is pursuing.

Apple depends on being the best of breed consumer product. Something that HP Voodoo’s division might have something to say about, exposing some kinks in Apple’s business model

Disclosure: I own a very small position in out of the money MSFT Jan 2009 calls and I own EBAY. I do not have a position in: HP, APPL, VMW (although I do own EMC), NOK, SNE, MOT, RIMM, BBY, TOSBF, LNVGY, JAVA, or DELL.

This article has 32 comments:

  •  
    Jun 23 10:26 AM
    Interesting article, but I don't see much of an Apples to apples comparison on most of it - pardon the pun. The Gateway you mention: How do its specs stack up to those on the Mac?

    You also still miss one main point regarding Apple computers to non-Apples. With the Apples you get to run Mac OS. You admit it's head over heels better than Windows, yet you choose the latter. You don't get it...yet. You almost did, but then you didn't. Oh well!
    Reply
  •  
    Jun 23 10:36 AM
    The thing with macs is that only comparing specs doesn't show you why they are better. My first mac was an ibook that I bought simply because it was at the time the best option for a cheap, small laptop. Although I am a computer professional, I was extremely affraid of a non-Windows operating system, which was the reason it took me weeks to maje the decision. Now, well, I may as well admit I am entranced by it. I cannot even imagine buying a computer that does not run MacOS. Plus, the hardware itself is well-built and equiped with all these small details you learn to appreciate and that you will miss when you try a different brand. My point is, you should try it for a month or two, and not decide purely on price/specs. You will be amazed on how some seemingly little details may make a big difference.
    Reply
  •  
    Jun 23 11:19 AM
    The notion that Activesync = BES is a joke. You get what you pay for. There is far more functionality with a BES that lets an admin exert significant control over the devices. Besides what security minded IT guy wants those incoming pings?

    To think that battery life is the only competitive advantage that RIM has is another bad joke. The layman totally misunderstands their true advantage: bandwidth efficiency. This will not go away when iPhone 3G is introduced. A comparison of download speeds of the bold vs. iPhone will show this very clearly.

    Finally, regarding the Macbook Air vs the Envy: The specs are basically the same except it appears that the voodoo's battery life is rated at 3h45m while the Macbook Air is rated at 5h. It will be interesting to see how it's priced by HP. I would guess though that they will basically price it the same as Apple. But once voodoo launches, Apple will upgrade the Air again and give you more for the same price. I think you are fooling yourself to keep going with an OS that you yourself realize is inferior when any of the objections posted above are easily surmountable.

    Reply
  •  
    Jun 23 11:24 AM
    Life is far to short to be stuck using only Windows. Open yourself to the possibility of using Mac OS X. If you use it for awhile, and you somehow prefer Windows (it's possible, but I doubt it) then you still have an excellent notebook with the Apple, which can run anything (and it will remain to be worth more should you decide to sell it in a year or two.)

    Reply
  •  
    Jun 23 11:44 AM
    You should look at the big picture. Macs are the best and will only get better with the upcoming super-stable and fast "snow leopard" version of OS X. Meanwhile, Microsoft is struggling to get service packs out for Vista. Apple is building a next generation ecosystem that will make dekstops, mobiles and cloud services work together seamlessly. After struggling with a Dell laptop I finally had to roll back to XP to get the thing to run right. That's an 8 year old operating system. When it crashed I took over my wife's old Mac Powerbook, upgraded to Leopard, and couldn't be happier. As a life long MS user I never would have believed I could love an operating system, but i do. The Mac OS X is amazing, and possibly life changing. I encourage you to borrow one for a week and you'll see what I'm talking about.
    Reply
  •  
    Jun 23 11:52 AM
    these commenters have it in a nutshell, you can put lipstick and nikes on that pig and it still is not going to fly because you will waste your precious time fighting viruses and looking foe dll's and installing drivers and dismissing messages like this "windows has determined that deleting this file may or may not affect programs that are installed on your drive or may be installed on your computer are you sure you want to delete this file" and of course the only button is "yes"

    a dual boot would be the least of your problems

    this kind of reminds me of a dog who gets fed half the time his master calls and beaten the other half. the dog comes when he calls but ears back cringing on his belly every windows user thinks the problem is he is too stupid to run the system right not that the system just does not run right
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  •  
    Jun 23 12:13 PM
    Let me get this straight: you're waiting to buy a laptop that isn't out yet, you've never seen a review on, that you don't know the price of (probably the same or more), and that runs Microsoft Vista that "might" be fixed with the next service pack? And your choosing that instead of running a slick, well reviewed piece of sweet engineering (Mac OS X) that you could buy this afternoon (Macbook Air)? This is like buying shoes that don't fit; not a good deal no matter how little you pay.
    Reply
  •  
    Jun 23 12:22 PM
    Brian,

    Save yourself from Windows regret. Find a friend or a switcher and ask them, "How's it going?"

    You might see a reason to go w/ the Mac.

    Good luck, whatever your choice...
    Reply
  •  
    Jun 23 12:23 PM
    I encourage everyone to use a Windows Vista computer, especially my competitors.
    Reply
  •  
    Jun 23 12:51 PM
    Tempered responses, but all AAPL fanboys just the same. Unfortunately, I am in the same category. I started with an iMac for home. Then another for the kids because they were constantly on my computer.

    I am forced to run Windows to access my business. Once I realized how easy it is to run OSX and Windows - simultaneously - it was easy to replace my old laptop with a MacBookPro. It's a little odd at first seeing Mac and Windows icons coexisting on the same desktop, but the operation is seamless. Once your brain gets used to the new layout and functionality it is hard not to increase your productivity.

    Am I insane? Perhaps. But it gets better. When I decided to upgrade from Tiger to Leopard - different versions of OSX like going from XP to Vista for Windows people - I didn't have to buy a new computer. I just installed the software. I didn't have to hunt down drivers for my peripherals, either. Everything worked.

    The Macs might have been more expensive at the outset if I only purchased on specs. But I would have missed the increased productivity and loss of frustration over constant error messages. More importantly, I likely would have been buying new computers if I decided to go with Vista. Instead, I know that my computers won't be obsolete in 2 years. That's something that I appreciate at home and for my business.

    To wrap it up, I have to agree with Roger. Encourage your competitors to use Windows. If they see you with a Mac just say it was a gift or something and that you really only run Windows on it.
    Reply
  •  
    Jun 23 01:17 PM
    "I would have bought it the second time, but it was the South Beach store and it seemed the price was a couple hundred dollars higher than in Dallas (no surprise there)".

    No surprise to you perhaps but a hell of a surprise to me. In my experience there is NO price differential between Apple Store prices. Indeed Apple makes a point of NEVER discounting. So your comment seems somewhat suspicious to me. I cannot believe that Apple has MBA (a very new product) with a $200 discount. If I am wrong can you please post a link here where we can validate your claim.
    Reply
  •  
    I just visited the Voodoo website. Looking at the specs., I thought it fascinating that HP is subtly dumping Windows. Yes, as they put it, since Microsoft can't fix it, they, HP, will come up with their own solutions... Which is: They have built their own "duel boot" machine. For most things, you will boot into Linux where they have optimized and preloaded everything you need for the web, mail, music, photos, word processing, and more. If you need to boot into Vista, you still can (but why bother). They have bypassed the archaic windows dependent BIOS when loading Linux, so start up times are almost instant when loading Linux. (Vista booting is still BIOS of course- while  uses modern EFI)

    HP is taking a lesson from . They are enticing people over to a better operating system (in this case Linux) while giving them the security blanket of what they know. This is the same strategy that has worked so well for  when they introduced Boot Camp & switched to Intel chips.

    Wow! I would never use anything else but OSX, but I applaud HP for trying to get out from under the M$ titanic ship that is sinking. This is a suburb and genius strategy to ensure their long term survival and independence.

    Quote from HP's Voodoo website:

    Voodoo IOS Quick Boot System
    "When you first press the power switch on most personal computers you typically wait as the BIOS loads, the memory count goes by, and the system proceeds to tell you hardware information before you get to the OS. This is the difference with the new Voodoo ENVY: When you enable the Voodoo IOS, you are immediately greeted with a menu when you press the power button! As we mentioned at our launch HP is placing a big emphasis on our own software solutions. We designed the look and feel for the new Voodoo IOS to be simple to use and easy to manage.

    How it works: Envy customers can choose to boot into an optimized Windows Vista, and Voodoo IOS includes a Linux operating system which takes seconds to load. So if you’re at the airport and you simply want to browse the web using an optimized version of Firefox, chat with your friends on Skype, instant messaging using Pigeon (an instant messaging client which allows for MSN, GTalk, Yahoo, and more), view photos or listen to music – you can do all of this without the need to boot into Windows."

    - I like that, ..."without the NEED to boot into Windows." M$ has shafted these companies long enough, now that the hand writing in on the wall, they are fighting back... if not only to ensure their own survival as M$ continues to fail.
    Reply
  •  
    Wow. How times have changed. A typical fuzzily against Mac article, but a sane, sober comments section filled with 100% Apple endorsers. Little emotion... lots of common sense and good judgment. Nice.
    Reply
  •  
    Jun 23 02:20 PM
    Comparing hardware specs for two different OS is like comparing engine cylinders and spark plugs in a Ford vs a Porsche.

    "Eight cylinders? Check. Oh the Ford Explorer must be the same as the Porche Cayenne."

    A "review" like this makes me totally doubt the intelligence of the reviewer, if they truly don't know why/when they would want/need to run one OS vs the other, they have no business reviewing computers.
    Reply
  •  
    Jun 23 02:35 PM
    Apple actually has better client management than Windows does. The difference is that with Apple you don't have to pay extra for it. It is all included. Apple remote desktop is also amazing and the price is perfect. We just switched a company from PCs to Macs, were able to jettison several IT workers and are saving tons of cash. As an IT professional, MS certifies along with Novell and Cisco... I will never go back to a PC again. Microsoft simply sucks. I haven't always felt that way but after I drank my first apple coolaid 2 years ago I haven't looked back. I would skip the HP and go right to a Macbook Pro.
    Reply
  •  
    Jun 23 03:22 PM
    Are we over 200 in AAPL ? Doris ?
    Reply
  •  
    Jun 23 04:15 PM
    Hi Brian. Are you aware that the word "chink" is also a racial eptithet as bad as the nword to Asians?

    I just ask that you do not use this word in any context.

    Thanks.
    Reply
  •  
    Jun 23 04:44 PM
    Seems like a very nice non-Apple laptop. A few things. One, a nice copy is always, just a nice copy. Two, I like the idea of a HDMI port instead of a mini-DVI. Same quality, but more common to find a HDMI dongle. Three, Apple Store pricing is uniform in the US. Four, I would have to test how well the dual Linux/Vista OS is integrated.

    And five, for someone who makes a special point about battery life, the Envy needs a removable battery since its battery seems to be especially small, 3-cells, and only rated for 3hr 45m. The MBA has a battery that is rated for far longer, and does actually seem to last comparably longer than other similar products. I mean if you need a removable battery, to get "amazing battery life", you can get an external battery that sits under your MBA. No big deal, but I'd rather have a superthin laptop with "amazing battery life" built-in.

    And, one more, I'd like to check to see if that battery adaptor isn't some gigantic beast, seeing as they moved some functionality over to it. If you have to carry it, it should count, and not be a cheat to a superlow weight spec.
    Reply
  •  
    Jun 23 05:49 PM
    Jamie4419 - get a life. My wife is Asian / Chinese and the use of the word chink in the context of the idiom "chink in the armor" is not offensive to me, her or her family in the least! Only when it is used as a racial slur is it in fact offensive. Lets not be ridiculous here...

    From the dictionary, the common use of the word goes back to the 16th century, while the offensive slang dates from the 19th. Read more here:

    chink 1 | ch i ng k|
    noun
    a narrow opening or crack, typically one that admits light : a chink in the curtains.
    • a narrow beam or patch of light admitted by such an opening : I noticed a chink of light under the door.
    PHRASES
    a chink in someone's armor a weak point in someone's character, arguments, or ideas, making them vulnerable to attack or criticism.
    ORIGIN mid 16th cent.: related to chine 2 .
    chink 2 |tʃɪŋk| |tʃɪŋk|
    verb
    make or cause to make a light and high-pitched ringing sound, as of glasses or coins striking together : [ intrans. ] the chain joining the handcuffs chinked | [ trans. ] they chinked glasses and kissed.
    noun
    a high-pitched ringing sound : the chink of glasses.
    Reply
  •  
    You know, it is oddly funny how everything has changed. I remember when I did everything on a mac. Then everything switched over to PC because it offered more features. It seems like this time around Apple seems to have won the battle. From what I am hearing it seems like everyone is more interested in Apple products.

    I do agree that the Apple Iphone could be easily replaced by something better. But if Apple does what they do best they may be able to come out strong.
    Reply
  •  
    Jun 23 07:29 PM
    I think this article totally misses the point. If you are a thrifty kind of guy who just wants to get the job done look no further than a PC. There are two different classes of Mac folk.

    1. The folks who love computers and want the best user experience and don't care about price per say.

    2. Folks who love the Apple Brand and all the chic and cultured associations that go with it.

    If you are a spec comparer you wouldn't understand and you deserve a Window PC and a few more dollars in your pocket.
    Reply
  •  
    Jun 23 07:39 PM
    I think the author of this article is missing an "o" in his last name.
    Reply
  •  
    Leopard's built-in features of Spotlight, Exposé, Spaces, and Time Machine are brilliant. All are productivity enhancers. Time Machine, Apple's simple to use backup software, can be a lifesaver.
    Reply
  •  
    Apple has phenomenal wake and sleep functions on its computers. No more waiting and waiting and guessing if it's going to work or not.
    Reply
  •  
    Here's something cool in Leopard for road warriors. Mail Data Detectors.

    www.apple.com/business...


    Reply
  •  
    Jun 23 10:21 PM
    Here's the difference: when you're working on a Mac, work is actually "fun." Oh yeah, and you get twice as much done in half the time.

    Trust me. I've worked on both.
    Reply
  •  
    Jun 24 01:36 AM
    you really can't compare 'apples' to oranges. the envy is a mere attempt to copy and not innovate. you are waiting for the envy to become available?? i have owned several voodoo envy products in the past and they have always been a disappointment. i have only owned one Apple product and i will certainly never go back to a inferior and overpriced product (Voodoo) that is now just hyped up by the marketing dollars of a mass manufacturer like HP.
    Reply
  •  
    Jun 24 02:33 AM
    Agreed with almost all the posters comments here - incl. the chap who straightened Mr. Jamie4419 out on the origin and use of the word "chink." Another case of PC (in this case political correctness) carried to the extreme. I suppose Jamie would also want people to refrain from using the word "mick" because it has occasionally been used as a derogatory term for Irish people. That would make life very hard on the very many Irish Michaels I know who go by Mick - not to mention the many who use the term to describe themselves on occasion... as have I; "I'm a mick." (Oh gosh! The "M" word!!! Shocking!!)

    As to the author - the poor soul obviously hasn't a clue as to why the Mac is superior - but his self-description as a "corporate type" tells us all we need to know (think Dilbert's pointy-haired manager).

    As for the droll notion that one needs a Windows box to run Windows apps on - that wasn't true even in earlier times - for example, Mac Office would open and run, or "save as" Windows documents - they were cross-compatible. With MacLink, you could open almost anything.
    And of course, now with Mactel, there is no earthly reason not to run a Mac - in fact, XP (I refuse to use Vista!) opens faster, runs smoother, and (so far) hasn't crashed on my wife's Macbook.

    As to enterprise, etc., see the comments above - large and small enterprise is starting to go Mac - propelled by the endusers who are adopting Mac products including the iPhone, and forcing their companies to adopt it as well - despite the sand-bagging by some IT departments who see their pink slips written on the wall.

    Last, the author clearly doesn't comprehend either the cloud computing concept, or the fact that iPhone is not a "cell phone" - it is the first true mobile, hand-held computer.

    But hey, at least the comments here have tried to straighten him out...





    Reply
  •  
    Jun 24 10:08 AM
    I just bought a 15-inch MacBook Pro 2.6 GHz with 250GB HD and 4GB RAM to replace my aging 17-inch PowerBook. I migrated everything over from the PowerBook in about an hour, and it just worked! Then I added Parallels Desktop and sucked the contents of my Dell Latitude 610 over to the Mac, lock, stock, and barrel, via network. With a fresh copy and activation of XP Pro, and a few minor tweaks, it works better on the Mac than it ever did on the Dell.

    Now I carry just ONE laptop instead of two. See, I have to use Windows on occasion, because my company's software runs only on Windows. But I have to use the Mac, because the software I use for creating training programs runs best or runs only on Macs.

    I use the Mac as much as possible, because I prefer to get things done without spurious interruptions from an operating system that wants to control me. XP works, but it's still an insult to my intelligence every time I boot it, even if it runs a lot faster on the MacBook.

    In short, don't short-change yourself. I have never met anyone -- ANYONE -- who has been disappointed with the last two versions of Mac OS X, the iApps, or recent Intel-powered Macs. And if you've ever been frustrated by computer vendors' service options, you've got to experience the Genius Bar at the Apple Store. If you have AppleCare, they treat you like a god.

    Oh, and the secret to the iPhone has nothing to do with phone service, but everything to do with the fact that it is an OS X device! It's a TRUE mobile computing platform.

    If you don't think we're witnessing another paradigm shift as we watch iPhone 2.0 mature, you're unaware of how these things work. Look at the Apple II, the Mac, OS X, Airport WiFi, the iPod/iTunes, the iPhone... I think you have to be blind not to understand the importance of Apple's influence on, and contributions to, the electronics industry. They are among the top 5 true change agents of the last 30 years.

    Micro$oft??? What a bloated mess. I think we're going to watch them decay for a good while under Steve Ballmer. They NEED to fail to get better... They haven't yet learned their lesson. IBM learned theirs in the late 1980s. Apple learned theirs in the late 1990s.

    (Full disclosure... I don't own any stock in any computer or electronics company.)
    Reply
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    Jun 24 10:41 AM
    First, to those that say its impossible to make a comparison - of course you can make a comparison, the Envy is trying to match a lot of the features of the Air and exceeding a few.

    The Envy and Air have many things in common:
    Same screen with same resolution.
    Same CPU and same shared video card.
    Same hard-drive options.
    Same 2 gb of RAM.
    Both have no optical media drive.
    Both built-in camera.
    Both back-lit keyboard.
    Ambient sensor for screen brightness.

    Envy Exceeds Air in several areas:
    Its .06" thinner.
    It has 2 USB versus 1 USB.
    One of those USB is also an eSATA.
    It comes with an external optical disk drive.
    Envy takes a 34mm ExpressCard
    It has a personal wifi base-station in the power adaptor.
    HDMI video out.
    Removable battery.
    Sensor to only light keys when hands are near.

    There are a few areas where Air is better:
    Air is lighter by .3 lb
    Air is less expensive by $200. ($100 if you want the external drive.)
    Air power adaptor looks to be much smaller and has MagSafe.
    Air battery, though built-in, is slightly larger 37 wh versus 33 wh.

    Then again the Air has been shipping in large quantities for nearly 6 months now and will be potentially updated soon.

    A few additional points on the Voodoo machine:

    In this video www.engadget.com/2008/.../ the Voodoo guy said that they have a very aggressive cooling system on it - suggested to me that it might be noisy. That would be very bad, perhaps carbon fiber does not dispel heat very well?

    In the same video cited above the voodoo guy said two things that seem to contradict each other: on one hand, they mentioned that it would be made in very limited quantities because of the carbon fiber, on the other hand they said that without HP's "scale" the machine's carbon fiber casing would cost $5000. So the question is: how to do you benefit from scale without having large quantities of production? Either it means that HP has some incredible carbon fiber technology that they are using, which would be news on its own or more likely that HP is losing money on these machines and that scale means that HP wants to see this sort of machine sold even if its a loss leader. The loss leader explanation seems more plausible to me otherwise why would the Envy made be in such a limited supply. Is the goal here to show that HP/VooDoo can match Apple's design chops? If so, does it really demonstrate anything if you make the machine in a material that is so impractical and expensive that you need to limit the production runs.

    If the Envy is really very expensive to make, that is a potential advantage to the Air in that one, it is widely available and two, that over time the price could drop. Nothing on the Air seems to add a lot of cost to it and it seems quite viable to be produced on a mass scale.

    Additionally we see all these special efforts made to get around long boot times - clearly HP is chaffing under Vista. i can't imagine how much frustration there is in the OEM camp about how Vista is ruining the PC market - it must be unreal.

    In summary, while the Envy has some cool features and matches in the Air in many ways, it weighs more and is more expensive than the Air. The Envy seems like a lose-leader to generate hype for HP and to keep people from doing what this writer says he was about to do - switch to Mac.
    Reply
  •  
    I'm consistently impressed at the zealousness of Apple users, and I enjoy some of the creative analogies in these comments. Understanding how a consumer electronics company built such a religious following may be the greatest example of brand building and will provide material for decades of case studies.

    I believe Apple’s brand has a more devote following than any other corporation. For example, last year Business Week named Nokia the number five brand in the world. In this post I basically trash Nokia for copying Apple and zero commenter’s came to support Nokia. Instead dozens wrote to support Apple even though this post was largely complimentary towards Apple's products. Of course, this has very positive implications for Apple investors.

    Unfortunately, the gist of my post appears to have been missed or largely ignored. I'm not questioning their product quality; I'm examining their business model. In the post I espoused how Apple has great products; currently the best. However, outside a very core following of rabid users, who will always use Apple branded products, Apple relies on having the best of breed products. It is extremely difficult to have best breed products over more than one product generation.

    In recent years Apple has benefited from the lack of innovation from HP, Dell, Microsoft, and others in the consumer computer/MP3 market. However, the next batch of products from HP's Voodoo line appears to be surprisingly innovative. If this is the beginning of a trend it could mark an inflection point of increased competition; potentially affecting Apple's margins. Apple's margins are astronomical compared to other consumer electronics companies. How sustainable is Apple's margins, even with their powerful brand?
    Reply
  •  
    Jun 25 08:41 PM
    Interesting post, I came here from the MacWorld site. My personal experience is that after 10 years of PCs one day we saw the MBA and decided to have it. We preordered it from Apple and after one week of using it we decided to dump Windows. I gave away my PC boxes and got a Mac Pro. This week my kids got a brand new Thinkpad and they were happy that it's Windows XP. They want it for they kiddy games. So after 6 months of Leopard I had to tinkle again with Windows and I hate it. I wanted to throw it off the window several times. I had to reset the laptop a couple of times because the Microsoft updates went wrong. I could go on and on.

    Bottom line: if you can afford to look at an Apple computer then get it and forget about it. There is no way you can compare the experience of it with any Windows computer. I would understand the story if you would look at a $500 Toshiba laptop and try to justify why not spend another $1300 for a MacBook or an MBA. That would make sense. But for somebody in the right mind to pay $2200 for a PC in 2008 - that is really hard to justify. Really hard to justify. Just try to imagine of what people would think of you... (Kind of paying $50,000 for a Saturn or KIA because it looks better or has better specs than a Mercedes?)
    Reply