Macintosh

Macintosh

• History of Macintosh• Member benefit• MacBook Family• Apple’s pricing and selling strategy• Bundling• Recent performance of Apple in computer

market• Repair and replacement • Comparison with Macs and other notebooks• Future development

History Of the Macintosh

Old Apple Computer logo, used from late 1976 to early 1999

History Of the Apple

• on April 1, 1976, – Apple I was sold as Apple's first product

– was founded by Steve Jobs, Steve Wozniak and Ronald Wayne

– was hand-built

– was sold as a motherboard (with CPU, RAM, and basic textual-video chips) - not what is today considered a complete personal computer

– Price: $666.66

History Of the Macintosh

• started in early 1979– the initiator of the

project: Jef Raskin– "Father of the

Macintosh"

Part of the original Macintosh design team.Left to right: George Crow, Joanna Hoffman, Burrell Smith, Andy Hertzfeld, a Macintosh, Bill Atkinson, Jerry Mannock.

History Of the Macintosh

• 1984: Introduction– officially announced on

January 22, 1984 – challenge the text-

based computers that dominated the market at the time

– lack of software for the new system

– “toy” The announcer's dialogue in Apple's 1984 ad, as it appears on the screen

History Of the Macintosh

• 1985 to 1989: The desktop publishing era – LaserWriter printer, Macromedia FreeHand,

MacPublisher and Aldus PageMaker – enabled users to design– strengthened the Mac’s position as a graphics

computer– limitations:

• little memory • low processor speed

History Of the Macintosh

• 1990 to 1998: Growth and decline– On March 17, 1988, Apple filed suit against Microsoft, accusing

them of violating copyrights Apple held on the Macintosh System Software.

– The lawsuit lasted four years; the decision was affirmed on appeal in 1994, and the appeal to the U.S. Supreme Court by Apple was denied.

– low profit margin– market share decrease

• Microsoft: Windows 95 operating system • Intel: Pentium processors

History Of the Macintosh

• 1999 to the present: New beginnings – introduced the iMac, Mac OS X Server

1.0 ….– significant boost in sales of Macs.

• halo effect: the success of the iPod

– MacBook was introduced

History of MacBook

• On 16/5/2006: MacBook

• On 10/1/2006: MacBook Pro – built-in iSight webcam – magnetic latch

mechanism Announced Released Last revision

MacBook 16 May 2006 16 May 2006 8 November 2006

MacBook Pro 15.4 in (Intel Core Duo)

10 January 2006 14 February 2006 24 October 2006

MacBook Pro 17 in (Intel Core Duo)

24 April 2006 24 April 2006 24 April 2006

MacBook Pro & MacBook (Intel

Core 2 Duo)Oct 2006 Oct 2006 Oct 2006

Member benefit

Member Benefits

• free complementary goods – Apple Remote

Member Benefits

• special product discount– “Save $240 on .Mac when

you buy a new Mac” • .Mac Photocasting• iWeb Publishing, Blogging, and Podcasting• Online Slideshow Viewer• High-Capacity Storage and Data Transfer Options• iDisk Access Through a Browser• .Mac Blog Articles

Member Benefits

• Preinstalled Apple software – Operating System :

• Mac OS X v10.4 Tiger • Address Book • DVD Player • iCal • iChat AV • Mail • Preview • Safari • Xcode

– Applications : • iLife ‘06 suite• Front Row • Photo Booth• iWork '06 30-day trial• Microsoft Office 2004 for Mac 30-day Test Drive

• Free software downloads

Member Benefits

• upgrade price

complete Universal version of Final Cut

Studio Upgrade from... Price

Final Cut Pro 5 HK$770

Final Cut Pro 4 or HD (4.5)

HK$1500

DVD Studio Pro 4 HK$1500

Production Suite HK$1500

Final Cut Pro 1, 2, or 3 HK$5400

MacBook Family

Apple has released 3 main types of portables :PowerBook(91’) , iBook(99’) MacBook Family(06’)

Rebranding & Replacing :MacBook -- iBook• The new MacBook offers performance up to five

times faster than the iBook and up to four times faster than the 12-inch PowerBook

MacBook Pro -- PowerBook• Apple claims 17-inch MacBook Pro is up to five

times faster than the 17-inch PowerBook G4Customers can find less PowerBooks or iBooks from

Apple’s online store.

MacBook Family--- New products in 2006

- 1st generation after using Intel

- Use Intel Core Duo CPU

- can use WINDOWS

2nd generation:

• MacBook and MacBook Pro were changed to new Intel Core 2 Duo CPU in Oct 06

=packs the power of two processor cores inside a single chip

• greater storage capacity

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April 06 – 100000 units

May 06 – 200000 units (released MacBook)

June 06 – 300000 units

06 (2nd) – shipped1.1million Macs06(3rd) – shipped 1.32million Macs (70% using Intel CPU)06(4th) – shipped 1.6million Macs, including 1million notebooks (50% new customers)

Shipment of Macs

00.20.40.60.8

11.21.41.61.8

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Macs

-MacBook 3 types of MacBooks price: $8600 - 11700

-MacBook Pro 3 types of MacBook Pros price : $15400 - 21500

MacBook Family

What makes their prices so different?

Functions MacBook MacBook Pro

Weight 5.2 pounds 5.6 pounds

Or

6.8 pounds

Display 13.3-inch glossy TFT widescreen display, 1280 by 800 resolution

15.4-inch , 1440 x 900 resolution, TFT widescreen

Or

17-inch (diagonal), 1680 x 1050 resolution, TFT widescreen

PCI Express graphics ATI Mobility Radeon X1600 graphics

Keyboard Backlit keyboard with ambient light sensors for automatic adjustment of keyboard illumination and screen brightness

Target customers

- MacBook Pro - designers (for working) - business and creative professionals Reasons: - higher performance in 2D and 3D graphics, video

editing, and music encoding - sharper, higher-resolution screen - works with a host of projectors which use standard DVI

ports or an optional video adapter.

- MacBook- youth

MacBook :

White & Black

Difference in price : $1500

Difference in function : 20GB more (Black)

Apple’s Pricing & Selling Strategies

Reasons for Macbook

• Black & white MacBook, WHY?

• Because they are of different target consumers.

• Black12’’ PowerBook User– Hard disk

• WhiteiBook Users PowerBook

iBook

High Price for Apple to ship Macs components

• Upgraded Memory (Ram) and Hard drive

• Actually, all computer manufacturers charge a premium for upgrades

• Make a lot of profit

• Example: iBook from Nov 2005, one 1G DIMM cost US$300 if upgrade through Apple. The do-it-yourself cost was $200

• 50% premium

Reason for high price on upgrades

• Paying fee for labor of installation and testing (car example)

• Apple originally manufactured their own Apple’s chips (CPU)

• So, you need to use Apple’s Ram

• Otherwise, which may creates system errors.

After releasing MacBook..

• MacBook is using Intel chip• It is expected that it will become more

compatible with some 3rd party manufacture Ram or other upgrade components.

• Price of the upgrades is expected to derease.• Now, two 1G DIMMs cost extra $500 in Apple. If

DIY, it costs $360• 39% premium, far less than that before releasing

of MacBook (50% premium).

Bundling

• Bundling

• Mac book, Mac book pro

• Software provided.

The software included

ilife 06

• iLife ‘06 suite – iPhoto 6– imovie HD 6– iDVD 6– GarageBand 3– iWeb

What ‘s so interesting?

• Apple bundles the ilife 06 together with the MacBook and MacBookpro.

• But,~ Apple also sells it separately. – ilife’06-----HK$590– ilife’06 Family Pack-------HK$750

Strategy of Apple

• This is a Mixed bundling

• Selling both goods in bundle and separately

• Apple’s revenue may increase is the demand is negatively correlated

Microsoft Hong Kong

• 2000 – Microsoft HK launched specially designed Microsoft office 2001 for Mac.

• Simplify tasks with innovative features.

• Firstly appeared on Macintosh platform.

• Now, Apple also give 30-day trial on MS office 2004

Recent Performance of Macintosh

Myth in the share - Slippery Numbers

Unfortunately, there are no widely published numbers for historical market share within specific segments. It's obvious, however, that Apple maintains a significant presence in certain markets:

1. •Adobe reports that about half their profits come from Mac users.2. •Apple holds a 23% second place share of the US education market 3. •Apple has a 15.2% leading share of the European education market4. •Apple's share of the US retail PC market is around 6.6%

Profits of Apple

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Worldwide PC market share

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Machintosh's share

2002 ---- ranked 6th in US PC market

2006 --- ranked 4th in US PC market

US PC market in 2006

32%

19%6%5%

38%Dell

HP

Gateway

Apple

Others

Repair and replacement

APPLE id

• You will got your APPLE id after each purchase

• It is a serial number that comes with your Apple’s product

• It is used for you to sign in the exclusive Applecare support sites and download valuable resources

• Every Mac comes with 90 days of telephone technical support and one year of service coverage at an Apple-authorized repair center

Basic Mac Coverage

Genius Bar at the retail stores

• Get help from a Genius In every Apple retail stores, you can meet Mac specialists who demonstrate products and answer your questions.

Complimentary supportApplecare protection plan

• It is a package of support programmes.• It provides telephone, email & chat support• For hardware,

it will support for basic setup, installation, assembly & connectivity• For software,

it will support for installation, launch and reinstallation

Extend your coverage to three years of service and expert telephone technical support.

What it includes?• The AppleCare Protection Plan covers your Mac, as well as an AirPort

Extreme Card, an AirPort Express or AirPort Extreme Base Station, and Apple RAM used with your Mac. Mac mini, Mac Pro, Power Mac, MacBook Pro, and PowerBook customers may also register one Apple display for coverage, provided that the Mac and the display are purchased together.

• It ensures that Apple-authorized technicians will perform repairs using genuine Apple parts

Global repair coverage• If you carry your Apple computer or iPod when you travel and happen to

need repair service, AppleCare Protection Plan offers global repair coverage. You can either go to an Apple retail store or contact Apple, and they’ll provide you with specific information on how to obtain service.

• It costs USD 99 and you can buy it at Apple online store

Procare support programme

• It’s only available at the Apple Store.

You will have access to the support

1. Priority handling of technical issues

2. Phone support 12 hours a day, 7 days a week

3. Submission of support incidents by telephone, email or web

4. 2 designated technical contacts for your organization

5. Access to the tools via the web6. Prompt email notification of

Apple technical issues

USD 19,995

USD 799

USD 2,799

Pay per incident• 1. Mac and Consumer Applications

• You may purchase a single-incident of phone support for Mac or consumer applications for $49.00 USD. Software support includes support for iWork, iLife ’06, Mac OS X version 10.4 Tiger, AirPort, AppleWorks, Safari, iChat, etc.

• 2. Xserve, Xserve RAID, and Professional Applications

• Single-incident phone support is available for Mac hardware, Xserve or Xserve RAID hardware, and current versions of professional applications such as Aperture, Final Cut Studio, and Logic, or the GUI in Mac OS X Server. The cost is $199.00 USD.

• 3. Cross-Platform Integration and Command-Line Interface

• For $695 USD, you may purchase a single-incident of phone support for system and network configuration issues including mixed-platform integration support or assistance with command-line interface tools.

Consumer Lock In

• A subsidiary market is created by the purchase of Apple’s products.

• They got the monopoly power in its repair and replacement service.

Other notebooks

Major brands

• ThinkPad• HP • DELL • ViewSonic • Packard Bell • TOSHIBA • SONY

• Fujitsu • Sharp • SAMSUNG • NEC • Panasonic • LG • SOTEC

Major brands (con’t)

• Lenovo • 神舟 • ASUS • BenQ • 方正 • 清華紫光 • 夏新• SANYO

• 聯寶 • TLONG • 博宇 • ACER • NETBOOK • 八億時空 • STAMP • HEDY • TCL

Major brands (con’t)

• 長城 • 新藍 • MSI

• 京東方 • 海爾 • Topstar

• 中柏

• 清華同方 • 清華同仁• viooo • DFREE • Soutec

• 冠承BTO

• 大亞東海

Model MacBook SONY VGN-SZ370P/C

Processor 1.83GHz Intel Core 2 Duo

Intel® Core™ 2 Duo Processor T7200

Memory Up to 2GB 2GB

Hard Disk Up to 200GB 120GB

Display 13.3-inch glossy 13.3”

Pre-installed OS Mac OS X

(support Microsoft Windows)

Microsoft Windows XP porfessional

Expansion Ports FireWire 400 and two USB 2.0 ports

USB 2.0 x 2, SD, IEEE1394, RGB

Wireless Communications

Built-in AirPort Extreme

Integrated Wireless (WAN) Wide Area Network

Graphics Controller Intel Graphics Media Accelerator 950

NVIDIA® GeForce® Go 7400 and Intel® Graphics Media Accelerator 950

Price ~HK$11700 ~US$2449.99

Future development

-More hardware outsourcing, e.g. AMD• APPLE have co-operated with Intel for two years in

hardware manufacturing • DigiTimes claims that Apple Computer is teaming up with

chipmaker AMD to deliver a new notebook that will employ AMD chips rather than those from Intel. (16 Nov)

-New marketing strategy Apple extended a pilot program, aimed at promoting Mac

sales, to 47 Best Buy locations nationwide (announced in Nov)

Future Development

- Product diversification iPhone, iTV, iPhone:Apple Computer's much anticipated iPod cell

phone will include a 2.0-megapixel digital camera when it arrives late first quarter or early second quarter of next year

- Intel Corp's plan to incorporate NAND flash memory into its next-generation notebook platform will enable PC manufacturers such as Apple Computer to develop systems that are twice as fast in some operations yet sustain longer battery life.

Reference• Publications:1. “APPLE”, The Inside Story of Intrigue, Egomania and Business Blunders, by Jim Carlton, Times

Business2. “The Macintosh Way” by Guy Kawasaki, Scolt, Foresman and Company

• http://www.apple.com• http://www.appleinsider.com• http://docs.info.apple.com/article.html?artnum=300431• http://www.metroradio.com.hk/news/fnews/20051012054443.htm• http://www.metroradio.com.hk/news/fnews/20050414053931.htm• http://www.takungpao.com.hk/news/06/10/20/JJ-638639.htm• http://www.takungpao.com.hk/news/06/07/21/JJ-596431.htm• http://www.singtaonet.com:82/health_drinking/digi/t20060222_146200.html• http://www.bhnkc.edu.hk/fph/itclub/0and1.htm• http://www.macgrass.com/?s=AAPL&submit=GO• http://www.microsoft.com/HK/corpinfo/2000/11/001115.htm • http://e-finet.com/newscenter/finetnews/transfersToWords.php?filecode=282987 • http://www.zdnet.com.au/reviews/software/internet/soa/Apple_Safari_RSS/

0,139023437,139193236,00.htm

Q & A

Thank YouGroup 4:

Lo Wai Man (ec_lwm)

Shek Cheuk Hang (ec_sch)

Tse Man Ting (ec_tmt)

Cheung Nga Ki (ec_cnk)

Ko Chak Hei (ma_kch)