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Considering Apple's significant profits and cash in the bank... Apple is well-suited to fund a loss-leader products that bolster their cachet in the professiona
by spamizbad 10y ago
Considering Apple's significant profits and cash in the bank... Apple is well-suited to fund a loss-leader products that bolster their cachet in the professional community -- putting their platform on the front-lines of culture creators.
Furthermore, today's demanding professional are tomorrows Joe Schmoes: having the hearts and minds of pioneers would them better see what's coming on the horizon. It just seems silly not to invest money to keep the power-user niches happy.
- bluejekyll 10y ago> Apple is well-suited to fund a loss-leader products that bolster their cachet in the professional community They could do this, but they have yet to prove that they will do it. Ever since Jobs, Apple has been hyper fixated on focused, profitable product lines. The Pro is out of step with that, and I bet with laptops making up the bulk of their computer sales, we'll start seeing them move away from the iMac too. My only guess right now is that they still feel they need the Pro to maintain their computer business, but I fear they are slowly becoming just a gadget company and will forget their roots.
- murukesh_s 10y agoI wish Apple management folks read the sentiment here. Because, I believe if not for Apple, the industry wouldn't have progressed this far, at least in the build quality department (We had Sony, Dell and IBMs pro laptops but they never had the combination of price/build quality/looks nailed).
- tlow 10y agoI think this is a very interesting perspective. If I understand correctly, your argument is that a Mac Pro product need not be a direct profit maker so long as it perpetuates Apple's position as a top end computer manufacturer. Have I understood correctly? Or are you perhaps prognosticating a change in market demands rendering such a product less relevant?
- spamizbad 10y agoYou got it. It's a strategy employed by the automobile industry as well: high-end loss leaders that "signal the brand" and cultivate loyalty among enthusiasts. Apple's claim is staked on high-margin products, so it needs an elite cachet much more than say... Xiaomi or Dell. And you can signal that to consumers with one-of-a-kind high-end products that operate on the absolute cutting-edge of various creative, technical, and scientific niches.
- blumentopf 10y agoPorsche for instance isn't earning any money with their LMP1 race cars. They need them to sustain the illusion that they're a sports car company, despite the majority of their sales being SUVs (Cayenne, Macan) and sedans (Panamera).
- graeme 10y agoThat, plus also the effect that people in the market for pro computers tend to be infleuntial. They creatd software and influence the purchasing decisions of others.