Macintosh
Macintosh
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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
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
Old Apple Computer logo,
used from late 1976 to
early 1999
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 textbased 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
Announced
mechanism
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
24 April 2006
24 April 2006
24 April 2006
Oct 2006
Oct 2006
Oct 2006
MacBook Pro 17 in
(Intel Core Duo)
MacBook Pro &
MacBook (Intel
Core 2 Duo)
Member benefit
Member Benefits
• free complementary
goods
– Apple Remote
Member Benefits
• special product discount
– “Save $240 on .Mac when
you buy a new Mac”
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.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 :
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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 G4
Customers 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
No. of unit sold of MacBook(Pro) in
2006
300000
250000
200000
Apr
units 150000
May
100000
Jun
50000
0
Apr
May
Month
April 06 – 100000 units
May 06 – 200000 units (released MacBook)
June 06 – 300000 units
Jun
Million (units)
Shipment of Macs
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Macs
06 (2nd q)
06 (3rd q)
06 (4th q)
year (quarter)
06 (2nd) – shipped1.1million Macs
06(3rd) – shipped 1.32million Macs (70% using Intel CPU)
06(4th) – shipped 1.6million Macs, including 1million notebooks (50% new
customers)
MacBook Family
-MacBook
3 types of MacBooks
price: $8600 - 11700
-MacBook Pro
3 types of MacBook Pros
price : $15400 - 21500
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
15.4-inch , 1440 x 900
widescreen display, 1280 resolution, TFT
by 800 resolution
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.
• Black12’’ PowerBook User
– Hard disk
• WhiteiBook Users
iBook
PowerBook
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:
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•Adobe reports that about half their profits come from Mac users.
•Apple holds a 23% second place share of the US education market
•Apple has a 15.2% leading share of the European education market
•Apple's share of the US retail PC market is around 6.6%
Profits of Apple
800
million dollar (US $)
600
400
200
0
-200
-400
97 98 00 00 01 01 01 02 04 05 05 06 06 06
(2) (1) (3) (4) (2) (3) (4) (1) (4) (2) (4) (1) (2) (3)
-600
-800
-1000
year (quarter)
profits
Worldwide PC market share
market share(%)
Machintosh's share
6
5
4
3
2
1
0
2002
2003
2004
year
2005
2006
US PC market in 2006
32%
38%
Dell
HP
Gateway
Apple
5%
6%
19%
2002 ---- ranked 6th in US PC market
2006 --- ranked 4th in US PC market
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
Basic Mac Coverage
• Every Mac comes with 90 days of
telephone technical support and one year
of service coverage at an Apple-authorized
repair center
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 support
Applecare 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
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It’s only available at the Apple
Store.
You will have access to the support
USD 19,995
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Priority handling of technical
issues
Phone support 12 hours a day,
7 days a week
Submission of support incidents
by telephone, email or web
2 designated technical contacts
for your organization
Access to the tools via the web
Prompt email notification of
Apple technical issues
USD 2,799
USD 799
Pay per incident
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1. Mac and Consumer Applications
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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.
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2. Xserve, Xserve RAID, and Professional Applications
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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.
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3. Cross-Platform Integration and Command-Line Interface
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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
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ThinkPad
HP
DELL
ViewSonic
Packard Bell
TOSHIBA
SONY
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Fujitsu
Sharp
SAMSUNG
NEC
Panasonic
LG
SOTEC
Major brands (con’t)
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Lenovo
神舟
ASUS
BenQ
方正
清華紫光
夏新
SANYO
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聯寶
TLONG
博宇
ACER
NETBOOK
八億時空
STAMP
HEDY
TCL
Major brands (con’t)
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長城
新藍
MSI
京東方
海爾
Topstar
中柏
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清華同方
清華同仁
viooo
DFREE
Soutec
冠承BTO
大亞東海
Model
MacBook
SONY VGNSZ370P/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
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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
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Publications:
“APPLE”, The Inside Story of Intrigue, Egomania and Business Blunders, by Jim Carlton, Times
Business
“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/0,139023437,139193
236,00.htm
Q&A
Thank You
Group 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)