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I don't see any chance Apple will capture much more of the market than it has; unless a person is an Apple user already, it would make no sense for them to purchase such a limited system.

I'll quote from Apple's iMac page:
1) "With its new Setup Assistant, the iMac can get you on the Internet in ten minutes."
2) "The DV-model iMacs not only let you watch movies, they even let you get started making them yourself. iMac DV models come loaded with Apple's easy-to-use iMovie software."
3) 350- or 400MHz PowerPC G3 processor
512K backside level 2 cache
100MHz system bus
64MB or 128MB of PC100 SDRAM
(3.3-volt, 64-bit wide, 168-pin, running at 100
MHz); two DIMM slots support up to 512MB
using 64MB, 128MB, or 256MB DIMMs
4) ATI RAGE 128 VR 2D/3D graphics accelerator with 8MB of SDRAM graphics memory and AGP 2X support
5) 6GB, 10GB, or 13GB Ultra ATA hard disk drive Slot-loading 24x-speed (maximum)
CD-ROM drive; or slot-loading 4x-speed
(maximum) DVD-ROM drive (plays DVD-Video discs; plays CD-ROMs at up to 24x speed)
6) Built-in 56K modem supports V.90 and K56flex standards (RJ-11 connector)*
7) Audio - Integrated high-performance Odyssey audio system from Harman Kardon Built-in microphone for speech recognition and audio recording Front-mounted dual mini headphone jacks Analog audio input and output minijacks; up to 16-bit stereo and 44.1kHz sampling rate

The iMac is the basic consumer piece of their product line. I won't even go into the iBook, Powerbook, or G4 specs. Exactly how is this a limited system? Put this next to a $800 celeron box & tell me which one is worth the money?

The argument that all one wants to do, in the main, is surf the net, and send a letter to Aunt Martha, would require a person to pay much too much for the basic Apple box,
See above re: "basic Apple box."

then too much again for a limited selection of printers, and a non-competetive price for software.
Interesting thought considering the number of Windows box makers who are now including USB ports with all of their machines & the number of peripheral makers who are adapting USB & Firewire. I guess this argument was valid last year. Today? Not so much.

Apple made its bones in the educational market; now, with impossible budgets leaving schools with too few books, and no supplies, how can too-costly computer purchases be justified?
You'll get no argument from me re: Apple's success in the education market. Regarding current budgets? I would submit that budgets have always been an issue in the school systems. This is not a new phenomenon. Yet, and I quote, "Apple made its bones in the educational market", all the while having a line of products that have always carried a higher price point than Windows based pc's. What's different today? Secondly, I would further submit that, as our nation, nay our world, continues it's rapid shift towards technology, it is the schools reponsibility make those computer purchases & prepare our children for that techno-centric marketplace. I would finally submit that they continue to do so.

However, this & your other reasons above show that you're limiting yourself to hardware. Consider, if you will, Apple's growing strength beyond hardware. I give you Quick Time. I concede that Apple would be severely limited if they were simply a box maker. They are, however, not so.
For a terrific explanation of the varied strength of Apple, I encourage you to read (or re-read) blueHerrings post:
http://boards.fool.com/Message.asp?id=1030042001039000&sort=id

In addition, you're arguments leave out the value the Brands have in todays marketplace. It's a fact that Brands & design wiegh heavily in the mind of a purchaser. Don't think so? Look at iMac's success. No better example than that. For a terrific post on this thought, consider reading this post from kmdesignfools:
http://boards.fool.com/Message.asp?id=1060205003332000&sort=id

Apple, poor Apple, I'm afraid you are suffering the Curse of Job(s)!
Indeed. & we have only the performance of the stock, as well as Apple's financials to offer as evidence of the "dire" position this puts the company in.
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