Seeking Alpha

Apple launches cheaper iMac

  • A new 21.5" entry-level iMac (AAPL) starts at just $1099 - $200 less than what the cheapest model for Apple's all-in-one desktop line previously went for.
  • The catch: Whereas the $1299 model features a quad-core, 2.7GHz, Intel Core i5 CPU (Turbo Boost to 3.2GHz.), the $1099 model sports a dual-core, 1.4GHz., i5 CPU (Turbo Boost to 2.7GHz.). It also has a smaller hard drive (500GB vs. 1TB), and less powerful integrated graphics (Intel HD 5000 vs. Iris Pro).
  • In April, Apple launched MacBook Airs that (in addition to having slightly faster CPUs) were $100 cheaper than comparable prior-gen units. The entry-level Air now goes for $899.
  • Apple's Mac revenue was up 1% Y/Y in FQ2 on the back of 5% unit growth. Mac ASP was $1339 - far above the PC industry average.
Comments (41)
  • sunwindgeo
    , contributor
    Comments (329) | Send Message
     
    Broader market though. Seems like something that will help them gain over time. Its hard to remember that the share price is actually pushing 700 right? That's overvalued, so these share splits can be negative
    18 Jun, 09:34 AM Reply Like
  • db313706
    , contributor
    Comments (198) | Send Message
     
    Those specifications are pitiful relative to the price charged. Not sure why Apple even bothers having tiers in their pricing.
    18 Jun, 09:39 AM Reply Like
  • kahokfan672
    , contributor
    Comments (12) | Send Message
     
    Because they can.
    18 Jun, 10:24 AM Reply Like
  • milehr
    , contributor
    Comments (475) | Send Message
     
    You do not pay for specifications. For the majority of users those specifications are more than adequate. You pay for years of trouble-free operation, low-cost software, and great support. You can easily keep iMac for 5 years, over which time its TCO will be significantly lower than of comparable Windows machine. Add to this time saved, when dealing with many problems that MS users are too familiar with.
    18 Jun, 10:33 AM Reply Like
  • Tri Duong
    , contributor
    Comments (1452) | Send Message
     
    "Those specifications are pitiful relative to the price charged"

     

    Not really, their monitor is one of the best in the industry. It's the same monitor. It's the same shell casing. The only difference is the processor and HDD. People in urban areas with high electricity costs would love this thing. Most people don't need a fast quad core either. Casual users make up the majority of users and they're not running FCP 10 or Adobe CS6 suites.

     

    "Not sure why Apple even bothers having tiers in their pricing."

     

    Because they are charging less for less and more for more lol.
    18 Jun, 10:34 AM Reply Like
  • IGUART
    , contributor
    Comments (132) | Send Message
     
    @milehr,
    Correct! I'm typing this on my 2005 G5 Quad 2.5ghz Power Mac w/30" Apple HD Monitor. This is my MAIN graphics computer for my biz and my daily driver as well. Yes, the OS is now a bit limiting but I've NEVER had a hardware problem with ANY of my Macs and as long as I can produce work issue free this is my go-to machine. For anyone paying attention that's 8-1/2 years of continuous use with NO issues to speak of. Sure. I paid about $3000 for the CPU and $3000 for the HD monitor, but the monitor will last as long as I can connect it to another machine because of it's DVI Interface. The CPU is also still usable as long as I'm willing to stick with it. I also have a new MacBook pro 15" that's I take with me when needed and play on. My iPhone is a 3G that I bought new when it came out and this year I might just upgrade to a 6 with larger screen. I've been on Macs since 1988 and my first machine I bought was a Mac Plus (used) in '92. I've only ever felt the need to upgrade every 5-8 years with my Macs. Windows folks aren't that lucky... or dare I say "smart". You can pay me now or you can pay me later I always say. Pay a bit more up front for your Mac and it'll take you further than any other machine I've EVER used. Long AAPL and Long APPLE! ;)
    18 Jun, 10:49 AM Reply Like
  • Three Cheese Fondue
    , contributor
    Comments (592) | Send Message
     
    LOL, spoken like a true fan.
    18 Jun, 11:47 AM Reply Like
  • Three Cheese Fondue
    , contributor
    Comments (592) | Send Message
     
    "Windows folks aren't that lucky... or dare I say "smart"."

     

    Yes, we're all dumb, we're all so envious that you're so smart.

     

    All those gazillions of people still running XP. 28% of the world's computers running a 13 year-old OS.

     

    So dumb they are, so dumb.
    18 Jun, 11:51 AM Reply Like
  • Tumbleweed666
    , contributor
    Comments (99) | Send Message
     
    The thing to know about high Mac purchase prices is that they keep their value well.
    A (say) 3-4 year old Mac can be sold for an appreciable percentage of its purchase price while a 3-4 year old PC is taken down to the recycling centre.

     

    I sold my 4 year old iMac for 35% of its price a few months back. Prior to that, my 4 year old originally top spec PC was junked.

     

    On the whole taking resale into account the Mac edges it in cost per year to own.
    18 Jun, 12:06 PM Reply Like
  • Krustyman
    , contributor
    Comments (828) | Send Message
     
    You are right milehr. I bought my iMac in 2008 and no problems in sight.

     

    Krusty
    18 Jun, 12:19 PM Reply Like
  • TechKurt
    , contributor
    Comments (3) | Send Message
     
    You are right. Apple offers overpriced consumer products with limited value added and takes a 30% higher margin. They hide key specifications and put "Designed in California" on the product. To further expand their margin they use proprietary interfaces making additional adapters necessary. They have a very limited product range with a pale design, no colors. That's why they bought Beats by Dr. Dre. They know how to keep quality and security weakness below the line. Good PR and social forces. Internal ad agency planned. The establishment of the modern smartphone they have done very well (with some luck). But in most innovational areas they have fallen behind: no touch screens and no 3/4G on OS X, no Transformer-like iOS devices and, iOS screen design behind since android 3.0. Late with wearables. Lagging behind with saphire glas - but making the first announcements.
    18 Jun, 01:07 PM Reply Like
  • 1509alpha
    , contributor
    Comments (36) | Send Message
     
    I am on a 7 year old mac-pro that works perfectly. Apple products work great for a much longer time. Saves me money and frustration in the long run.
    18 Jun, 01:12 PM Reply Like
  • db313706
    , contributor
    Comments (198) | Send Message
     
    I suppose there are a handful of valid response of disapproval with regards to what I said above.

     

    Still, I don't see things as being as complicated for average Joe as they were in the mid 90's. If you can watch a pop culture video on YouTube and work the SA forum, then you can certainly watch some DIY videos and work a Hackintosh forum.

     

    No need to be so black and white between buying a PC and an Mac when you can build the former and transform it into the latter, usually at around a ~30-40% discount.

     

    Just my 2 cents.
    18 Jun, 01:13 PM Reply Like
  • awakeinwa
    , contributor
    Comments (289) | Send Message
     
    As a Microsoft veteran who worked at the mother ship for 11 years, I can unequivocally say you are wrong.

     

    As others have cited, the Mac yields far greater retained value overall. Hardware is dead without intuitive software that enables a great content, deployment, and productivity user experience.

     

    Mac OS with trackpad beats the pants off Win8 with touchscreen. You cite inert statistics without attention to the details that matter. I can do at least twice as much on Apple with at least half the number of gestures and clicks than I can on any Microsoft machination, hands down. Ntm features like Mission Control, registry-free hassle free app deployment, memory doubling/compression, and power management that yields the Macbook 11 hours battery life.

     

    You may very well be use to the likes of this http://bit.ly/1soEaqA but for those of use who don't have time to waste on inane computing "sysadmin" silliness, which as a 2 decades software veteran, I can safely say that I am, Apple is the way to go.
    18 Jun, 02:21 PM Reply Like
  • db313706
    , contributor
    Comments (198) | Send Message
     
    Okay...

     

    I didn't comment on the trackpad versus touchscreen. I prefer a mouse.

     

    Also I didn't comment on OSX versus (Insert OS here). Never liked Mission Control. That battery life is nice, but don't we have Haswell to thank for that?

     

    You chose installing an SQL server as your example? Well yeah, I have no use for that, most don't. I'm talking purchasing the basic 7 or 8 primary components at baseline MSRP and watching a 10 minute video, but only if you like saving money.

     

    Everyone's got their preferences, just how much convenience they're willing to pay for. I'm in my mid 20's so I'd much rather build an equivalent machine for a steep discount and use the money for, well... stocks come to mind.

     

    For the record I'm on my second MacBook Pro (2007 and 2012). The current one will be my final Apple product. Next is a personal Hackintosh as my old one (~2003) is ready for retirement.
    18 Jun, 04:17 PM Reply Like
  • kirk otis
    , contributor
    Comments (277) | Send Message
     
    A fan, or a user that has not had to deal with blood pressure issues experienced by a Windows machine? I have moved to Mac's myself but have one application Microsoft Project that runs on Windows, so I have to run Windows on my Mac on a virtural machine. When I do, I frequently have issues.... either its to constant updates, reboots, or its the virus alerts that pop up.

     

    I think this offer will have a great position. I would like an iMac in the kitchen or on the office desk. two locations where i would not need any real power for graphics... just for browsing and media... but a location where i want a clean, uncluttered device that is able to attach to the internet, the cloud, and shared media without having the pain of updates, expensive Microsoft software, virus protection etc. I want something easy, less painful, and something that just works.
    19 Jun, 09:02 AM Reply Like
  • kirk otis
    , contributor
    Comments (277) | Send Message
     
    what key specs.... ?

     

    one may think you mean processor speeds but for browsing and media consumption you need a faster internet, not a faster processor. A better graphics card, unless you play games. Or a larger hard drive, which in a cloud connected world you will not need. It only needs to be big enough and then other content to be stored where it is accessible by all your devices (be it windows or androids or ios/osx devices). The real specs are something that is useful, easy to use, reliable and is elegant and sleek and priced appropriately.

     

    the key spec is the internet's responsivity ( a combination of fast and fat).
    19 Jun, 09:14 AM Reply Like
  • IGUART
    , contributor
    Comments (132) | Send Message
     
    LOL... not dumb, ignorant, ignorant to the facts to be specific, Macs are just better! Better quality, better designed, better cohesion... just plain better! Sure, at a Retail Price Point "you" would think it's more pricey, but to someone who's used them for 20+ years it's cheaper to have something that's never down than something cheap and buggy. I don't waste my time & money on bugs, viruses, software glitches, popups, etc. In the 20 plus years of ownership I've had only 2 hardware fails... one was a Western Digital HD & the other a Sony Deflection Board in an Apple 1710 Monitor (1997ish) which if I'm not mistaken Apple never built. So, please use your windows XP and enjoy your life (ie: bugs, viruses, software glitches, popups, etc). I on the other hand will sit back and know that mine is worry free when it comes to my computing needs. Thanxx for playing. ;)
    19 Jun, 09:33 AM Reply Like
  • IGUART
    , contributor
    Comments (132) | Send Message
     
    True dat! After 20+ years of using them AND profiting off the stock you'd be 100% accurate!
    19 Jun, 09:35 AM Reply Like
  • thotdoc
    , contributor
    Comments (1412) | Send Message
     
    This machine is perfect for my accounting desk and other desks at the office that require new machines whose functions are not very processor labor intensive and whose storage needs at the machine are relatively minimal and tied to the specific function of that desk.

     

    That will be about 10 machines for us and hundreds of thousands, or more, for desks in corporations through-out the world.
    18 Jun, 10:03 AM Reply Like
  • BornIn87
    , contributor
    Comments (98) | Send Message
     
    You would spend $1000 on an iMAC for your accounting desk? Sounds like a fiscally irresponsible accounting department.
    18 Jun, 10:36 AM Reply Like
  • King Rat
    , contributor
    Comments (564) | Send Message
     
    My child, let me introduce you to a concept called "TCO". Or similarly, how much do each user's computing needs cost per year?

     

    This is exactly what other people have said.

     

    $1000 is a high cost, but fully depreciated over 4 years while it can still be salvaged for $400. Cost/year, $150.

     

    Take a $600 desktop of similar build. Yearly maintenance is another $100. 4 years later it is salvaged for $0. Cost/year, $250.

     

    So yes, "$1000 on an iMAC for your accounting desk" is fiscally responsible. Focusing only on short-term costs is fiscally irresponsible.
    18 Jun, 12:59 PM Reply Like
  • thotdoc
    , contributor
    Comments (1412) | Send Message
     
    King-
    Thanks. I love it, he's 27 and giving advice.
    18 Jun, 01:25 PM Reply Like
  • BornIn87
    , contributor
    Comments (98) | Send Message
     
    Such awe-inspiring expertise wouldn't look out of place on the back of a napkin, not-my-father.
    19 Jun, 09:46 AM Reply Like
  • chamorrodio
    , contributor
    Comment (1) | Send Message
     
    Amazing great products and lowering price!
    18 Jun, 10:05 AM Reply Like
  • Tri Duong
    , contributor
    Comments (1452) | Send Message
     
    This new addition is for casual users obviously. What they're trying to do is getting more people into their ecosystems. Apple's software sales are near pure profit. Itunes alone is well above $20B a year.
    18 Jun, 10:06 AM Reply Like
  • Andrew A
    , contributor
    Comments (116) | Send Message
     
    Everybody in my offices would LOVE to work on an Apple iMac. They are so sick of working on the real thing at home only to return to work and go back in time with the "Windowsaurs". I might be able to afford it now.
    18 Jun, 10:15 AM Reply Like
  • techy46
    , contributor
    Comments (5471) | Send Message
     
    Another jar of Applesauce!
    18 Jun, 10:21 AM Reply Like
  • $vix
    , contributor
    Comments (419) | Send Message
     
    While I am an iphone 5s and ipad air user, I went the opposite way in my office and uprgaded our computers from macs to Windows 8.1 - many of which are the Lenovo 27 inch all in one touch screens
    Win 8 is very fast, powerful and boots in seconds. Rock solid stable with no issues whatsoever. The combination of keyboard mouse and touch increases productivity for us and brings computing into the 21st century.
    Some employees have said that going home and using their Macs feels antiquated after using the touchscreen.
    We have replaced our work ipads with Surface Pro 2's and soon the Pro 3's.
    While we still love our iphones and ipad airs, the win 8 machines and surface combination has worked very well in our office and for productivity
    we made an excellent choice
    18 Jun, 10:33 AM Reply Like
  • Tumbleweed666
    , contributor
    Comments (99) | Send Message
     
    In three years time I venture to say that those Windows Machines would be written off as unsaleable, whereas a Mac would have probably 40-50% resale value.
    18 Jun, 12:09 PM Reply Like
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    Interesting to observe - two anonymous slingers ready at the starting gate.

     

    The new Mac I have been waiting for.
    18 Jun, 10:18 AM Reply Like
  • kimboslice
    , contributor
    Comments (1461) | Send Message
     
    They'll sell a lot of iMacs and it's OK to have different specs on them.

     

    re: Windows. Anyone who has not put Linux on old windows machines is in the dinosaur age and deserves the viruses and spyware that will inevitably infect the windows boxes.

     

    Mac=UNIX. Windows=windows.
    18 Jun, 11:12 AM Reply Like
  • gelstretch
    , contributor
    Comments (811) | Send Message
     
    The expansionary markets are realistically in foreign emerging markets, that often are more price sensitive, therefore it is desirable to offer entry level products that snare new users into the Apple ecosystem. Differing levels of computing power are a major benefit, while attracting a more diversified customer base.

     

    I consider this a marketing coup.
    18 Jun, 11:48 AM Reply Like
  • ptnyc
    , contributor
    Comments (49) | Send Message
     
    Seems like a good move. Basically a macbook air with a large screen. Apple is slowly making it easier for more iPhone/ipad users to expand their Apple ecosystem. Once you buy a few Apple products, you never want to leave.
    18 Jun, 12:57 PM Reply Like
  • claudemonet
    , contributor
    Comments (4) | Send Message
     
    Where can I get a translation of this article? What is a quad and why should I care? Etc. etc. I'm an Apple owner and user. I'd like to consider your thoughts but kindly put them in to plain English.

     

    Many thanks,

     

    E
    18 Jun, 12:58 PM Reply Like
  • kirk otis
    , contributor
    Comments (277) | Send Message
     
    all you should care about is whether it is fast enough, or has enough storage.

     

    unless you are a gamer and want to use a small screen, or a video editor and need to prepare renderings it doesn't matter.

     

    everyone knows that Intel has slowed because the world has reached the point where the processor and graphics car is no longer the selling point except for a small sliver of the market. Its about ease of use. i do agree that a touch screen is useful and find it odd that Apple (the leader in touch) has not implemented touch on iMacs and MacBooks even though its use is limited.
    19 Jun, 09:32 AM Reply Like
  • gilles fum
    , contributor
    Comments (5) | Send Message
     
    About to switch after 30 years and 25+ MS laptops and desktops. Never had a reason to go through the trouble to learn IOS, but I just realized after buying my last laptop recently (that makes 4 old ones beside my bed collecting dust) that for $200 more I could have had a Mac. Planning to give this clumsy new laptop away and plan to buy MacBook when I switch from Galaxy notes to I6 this fall. This new laptop already after a couple months gives me less battery life than my girlfriends 2 year old Mac.

     

    Loving the idea of picking up my work on any device. Seriously considering a Mac pro for Xmas, if I am switching, I might as well take advantage of the whole ecosystem. My phone, my tablet, my laptop, my watch, all carrying my work, my notes, my health info, my wallet, my credit cards, running my home... How do people not see the gigantic opportunity for Apple to sell us high quality I-Everything... medical devices, sensors for my car, my house, my body... The growth opportunities are endless and no other business in the world has this tight an ecosystem while at the same time having a fantastic image and almost cult following with their own clients.

     

    I think a lot of people will be in the same situation, I am so tired of compatibility issues, of a million passwords, I crave ease of use. Give me a full integrated ecosystem, and unless you really mess up, you'll have this customer for a very long time.
    18 Jun, 12:58 PM Reply Like
  • alphadaddy74*
    , contributor
    Comments (4) | Send Message
     
    The only challenge I have with Macs is integrating them into my Windows AD Envrionment.

     

    To control users via passwords that expire and to lock machines down is a security nightmare for compliance.

     

    I haven't a found a product to do this elegantly. Open Directory is close but I haven't found anything else. I could be wrong however.
    18 Jun, 12:59 PM Reply Like
  • King Rat
    , contributor
    Comments (564) | Send Message
     
    Basically they are taking the internals of the MacBookAir and charging $100 more (than the 8GB MBA option). For $100 more you get a beautiful screen but lose portability.

     

    Personally I would rather get the MacBookAir and extra $150 1080P IPS display. For just $50 more than the iMac I would get great portability.

     

    For people like my parents who need simplicity, there is little difference between the $1300 iMac and $1100 iMac except for price.
    18 Jun, 01:11 PM Reply Like
  • jmcahren
    , contributor
    Comments (3) | Send Message
     
    Give me a touch screen MacBookAir and I might consider buying one... they almost can't do it now or it will appear that they are trying to catch up with MS.
    18 Jun, 05:08 PM Reply Like
  • IGUART
    , contributor
    Comments (132) | Send Message
     
    jmcahren, I've been saying the same thing. While I LOVE my new MacBook Pro with awesome new trackpad I'd love it to offer a touchscreen as well. I'd love it to fold over on itself and become an iPad Pro but with keyboard. I want BOTH. And NO, not buying into the MS abyss. Cheers.
    19 Jun, 09:42 AM Reply Like
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