- Andrew Richardson
- Software engineer, business owner, husband, runner and member of my pack of four-legged girls.
- 2014 (2)
- 2013 (91)
- 2012 (411)
- A Note On #5byBond
- #5byBond: License To Kill
- The Network Effect, for Cars
- MacBook Availability Constraint Should Signal the ...
- Nokia N9 Looking Better All the Time
- Uphill Battle for Microsoft
- Chromebook First Use Impressions
- American McCarver
- Magnetic Underpants Questioned
- Why I'm a Fan
- Two New Apple Phones for the US Makes No Sense
- Tech Bubble? What Tech Bubble?
- Refunds for Crappy Apps
- ∴ Skype Employment Contract: Maybe It's Time For a...
- Just For the Lulz
- Ally. Hmm.
- Disney, Roy Disney
- Oh Sir, Uh, One More Thing...
- Why Macs Cost More
- Driverless Cars Take One Step Forward
- Clooney Heard the Wrong Words
- Another View on Nokia's N9
- Wow, Real Competition for iPhone
- Newt, As the Hindenburg
- Thing Are Looking Up For Next Windows Phone OS
- The US Fed Will Have Its Hands Full, Again
- Dubai: No Past, Itinerant Future
- ∴ Just Plain Awful
- Watch This
- #5byBond: The Living Daylights
- Blackberry, RIM, Effectively Dead
- An Informal SSD Benchmark
- Flight of Rust
- Facebook IPO May Come Soon, But...
- Goodyear Blimp Burns, Crashes
- Underwater Spider
- iCloud To Eschew Windows XP
- Movie Hounds Rejoice
- ∴ Resolving the Future
- The Wind Blows This Way...
- “It Just Works.”
- Thoughts on a Keynote
- iMessage Update
- ∴ iCloud Feature: iMessage
- ∴ iCloud Feature: Photo Stream
- ∴ iCloud Feature: File and Document Storage
- ∴ iCloud Feature: Scan and Match
- The Long and the Short of WWDC 2011
- ∴ Apple Unveils iCloud, Lion and iOS 5
- US Postal Service Nears the Edge
- ∴ Pre-WWDC
- Ohio Woman Has Had Same Bank Account For 98 Years
- ∴ Just Say NO to Groupon's IPO
- Cooking With Bond
- Apple Signs Universal Music to iCloud Service
- 2010 (23)
“Apple makes more money from the sale of one Mac than HP does from selling seven PCs.”
Hit the link to see Matt do the math leading to that conclusion.
Yep, Macs cost more. About $320 of that “more” is profit (Mac profit - HP profit, per machine), the rest is hardware and software costs.
If the average selling price of a Mac runs about $710 more than a PC (ASP of a Mac - ASP of an HP machine), and about $320 of that is profit, then the remaining $390 must be those higher costs. Apple’s computing hardware, and the software development behind OS X, actually cost more to manufacture. Given the volume their manufacturing partners are turning out and the squeeze to contain costs put on them by Apple, one has to wonder why.
The answer is fairly obvious to anyone coming to Macs after years of using commodity PC equipment: better design and build quality costs more. What you get is a machine whose hinges don’t begin to wobble in the first six months of use, and whose keyboard doesn’t degrade to a rickety mess of loose keys and hidden debris. I’ve owned or used at least a half-dozen Dell and Winbook laptops over the years. Each required at least one service call during its three-year life cycle, one as many as three, leaving a single piece of plastic from among the original parts. I’d bet that HP repair statistics are similar.
Apple customers are people willing to pay $390 more for computing hardware and software, and reward the company with commensurately higher profits. All I can add to Matt’s post is, “you get what you pay for.”