 |
More of my sitesWinInfo Daily News
|
About this siteFor six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul Friday, July 02, 2004A theory about the Apple iMac implosion In the wake of Apple's bizarre and unprecedented decision to not sell any iMacs between now and September, when the new iMac G5 will allegedly ship, many people are wondering what went wrong. I have my own theory.
First, why didn't Apple simply announce the product at the WWDC this week, with the understanding that the product wouldn't ship for three months? After all, they do this all the time. In fact, the iPod Mini is arguably still not shipping three months after it was supposed to be released in the US. Well, it's simple: Doing so in this case would have killed existing iMac sales. But because Apple would have had to keep making them to keep up with any remaining demand, its iMac sales figures for 2004 would have been doubly miserable, as unpurchased stock sat on shelves. As we know, iMac sales for 2004 were miserable already, and falling fast: Many reports have noted the sharp declines in year-over-year iMac sales lately. By simply canceling the current iMac line, however, Apple has an out: When the iMac sales figures for 2004 nose-dive, as they would have anyway, the company can simply point to its mid-year "problem" and cite that as the excuse: Sales would have been fine, you know, but we missing our replacement deadline and couldn't get the parts for the old units anymore. Who would complain about that? After all, the company apologized for the error. It's obvious, really. If Apple had just kept quiet about the next iMac, as it might have normally, the expected super-poor summer iMac sales (because many people would have held off for an expected G5 version) would have lessened the appeal of the product line, maybe damaged it irreparably. But by simply canceling the product, they have a ready-made excuse about the sales, and can build excitement in a G5-based product. And when that product takes off, they look great. However, two things need to happen for that last bit to work. First, the G5 iMac has to be less expensive than the current models, significantly less expensive. With perfectly workable PCs selling for $500 these days, the $1500-$2000 iMac was a tough sell, even with its beautiful flat panel displays. Second, Apple is going to have to sell a bunch of the things to make up for the falling (and, now, non-existent) sales. That means they can't cripple the things like they did with the previous generation. The next iMac has to be incredible, or it's Game Over. Can Apple create an expandable, powerful, and cheap iMac? Will it be an all-in-one unit, or will they leave that market to the eMac? I'm all for a cheap, headless iMac, but they need to make some cheap displays too. The current displays, as good as they are, are just too expensive for consumers. This will all make for an interesting summer of speculation, of course... [ Posted at 3:36 PM | Permalink ]
|
|
Nexus Home | Nexus Archives | Email Paul
|