Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
As Christmas fast approaches, it seems that sub-$1,000 iMac's are almost here. See: http://www.bestbuy.com/productinfo/products/product.asp?C=33&S=0&I=3527623&Index=1

Word is, Best Buy has lowered the iMac to that magic $999 price already but isn't advertising it yet.

Ho, ho, ho! Fool On!
Print the post Back To Top
No. of Recommendations: 0
Price wars confirmed.

Apple steps in... kinda'.

Gotta love it.

Details here: http://macweek.zdnet.com/1998/12/13/bestbuy.html

Fool On!

P.S. I just got back from the Barnes and Noble--the iMac is being mentioned everywhere. Heck, Business Week is even showering it with praise as one of the best new products of 1998.

And, the advertisments from Apple are everywhere now too. Again... inside front cover of Business Week has a PowerBook G3 two-page ad...,

...followed by a Filemaker Pro ad (from Filemaker, I know. But who for one minute thinks that Jobs gave-up all control of FileMaker, Inc.?) Brilliant! Just darn brilliant!
Print the post Back To Top
No. of Recommendations: 0
Could this be a price war?
Print the post Back To Top
No. of Recommendations: 0
Hi apeman,

Could this be a price war?

Yep, it could be, but it also could be Best Buy blowing out stagnant inventory. Unlike Apple's other retailers, Best Buy isn't essentially a computer store, and they don't appear (trusting to anecdotal evidence, and what I've personally witnessed) to be doing a very good job of selling iMacs. In all likelihood, their inventory levels have been building, and the one way they know to move inventory is to slash prices.

Hopefully, they'll get the hang of marketing iMacs eventually, and be able to compete at a profitable pricing level. (I doubt that Best Buy is making a dollar at $1099.)

On the other hand, this price cut could signal the beginning of the end for Apple's experiment with Best Buy. Either Best Buy may want out of a product that they don't know how to sell, or Apple may want to eliminate a retailer that won't abide by their MAP (Manufacturer's Advertised Price) guidelines.

Note that other retailers have kept within the MAP via bundling, rebates, etc. According to their own statements, Best Buy management didn't consult Apple before publishing their way below MAP discount pricing.

If this is a price war, it's one that Apple probably doesn't want. It should be interesting to see what happens...

Regards,

Jonathan
Print the post Back To Top
No. of Recommendations: 0
km.

Word is, Best Buy has lowered the iMac to that magic $999 price already but isn't advertising it yet.

I stopped by Best Buy this afternoon and they were stickered at $1099.99.

The iMac display was prominent along the main aisle, but, I was disappointed that they chose to place the small raft of Mac software away from the machine, at the farthest end of a sea of Windoze racks. The software titles were all the boring stuff, and little in the way of supportive games and utilities. That has to be a downer for people who are frequently told (by folks with MS stamped on their heads) that there is not much software for the Mac. Seems like Apple could insist on a little more heads up support from BB.

Still, there was a crowd around the iMac constantly, and I didn't see a similar queueing around the beige boxes. They had a 3d walk-around beach house graphics demo with fast smooth refresh rates that seemed to catch everyone's eye. I almost bought one for the wife, but I'm waiting for the portable.

Foolishly,

Stony

Print the post Back To Top
No. of Recommendations: 0
Yep, i think BestBuy is having trouble selling iMacs.


The other day, Apple was trying to get gray marketers to stop selling iMacs. They don't want small people to sell them, because this takes away business from CompUSA and BestBuy.

I think it would be a smart move to stop these small people from selling iMacs IMHO.
Print the post Back To Top
No. of Recommendations: 0
The observation that Best Buy is not
predominantly a computer store is key
to this analysis. A simple explaination
might account for their price drop:
iMac (a nationally advertised brand from
a world recognized company) provides
traffic through their stores in this
Christmas shopping season. Even if
they lose a couple of bucks on the iMac
sale, they probably recoup the loss
through other (non-computer) purchases.

In short, perhaps Best Buy finds the
iMac a very good "loss leader" for
traffic through their stores and other
sales opportunities. Fine for Apple--
their margin is the same and volume
_increases_ as price goes down (or
so my economics professor claimed
way back in college!)

This is an interesting story to watch...

-- Scott
Print the post Back To Top
No. of Recommendations: 0
Scott

In short, perhaps Best Buy finds the iMac a very good "loss leader" for traffic through their stores and other sales opportunities.

Given that they separate the machine from the small sampling of Mac software, I would concur. Best Buy places the iMac on a prominent, but narrow aisle, so all the folks that would queue around the machine can't for lack of space. I sense, in this one store that managment has decided to do just as you say, treat it as a loss leader. Get the eyeballs in, and then divert them to the beige stuff.

Curiously, I returned today to pick up a Midi keyboard and noticed that the price tag on the iMac that was ticketed at $1099.99 yesterday was now 1299.99. What a difference a day makes. I suspect that they may have had some of the earlier iMacs and were just clearing them out for the latest and greatest.

Stony

Print the post Back To Top
No. of Recommendations: 0
I was at a CompUsa in Phoenix this weekend and they we're selling the iMac for $999.00. The sign read "CompUSA beat Best Buys price on the iMac".

Got to get one!
Print the post Back To Top
No. of Recommendations: 0
Best Buy has lowered the iMac to that magic $999 price

Oh, your one of those Mac diehard faithfuls I have been hearing about. Don't let this price fool you. Best Buy is trying to get rid of their inventory; they are losing money as they are selling below cost. Poor Apple, with all those dollars spent on advertising and iMac sales drying up, the future looks dim. Sorry, diehards, you lose again....
Print the post Back To Top
No. of Recommendations: 0
Oh, your one of those Mac diehard faithfuls I have been hearing about. Don't let this price fool you. Best Buy is trying to get rid of their inventory; they are losing money as they are selling below cost. Poor Apple, with all those dollars spent on advertising and iMac sales drying up, the future looks dim. Sorry, diehards, you lose again....


CBSM 12/21 13:17 [AAPL] PC DATA REPORTS IMAC WAS NO. 1 RETAIL AND MAIL ORDER PC IN NOV.

Print the post Back To Top
No. of Recommendations: 0
Apple will be releasing a new iMac soon with a price target of about 1299. The old iMacs' prioce will be dropped to 999. That is what's really going on.
Print the post Back To Top
No. of Recommendations: 0
I wrote:

Best Buy has lowered the iMac to that magic $999 pric ...

ddiggler wrote:

Oh, your one of those Mac diehard faithfuls I have been hearing about. Don't let this price fool you. Best Buy is trying
to get rid of their inventory; they are losing money as they are selling below cost. Poor Apple, with all those dollars
spent on advertising and iMac sales drying up, the future looks dim. Sorry, diehards, you lose again....

*****

Nifty new feature, that "Sad Face" icon. I think I'll use it on ddiggler's recent post.

Ah, that's better...

Fool On!
Print the post Back To Top
No. of Recommendations: 0

Nifty new feature, that "Sad Face" icon. I think I'll use it on ddiggler's recent post.

Ah, that's better...


Thanks, kmdesignfools! "Ignore" button! Hooray!

subjub
Print the post Back To Top
No. of Recommendations: 0
Nifty new feature, that "Sad Face" icon. I think I'll use it on ddiggler's recent post

Ah, the cowards have spoken. Great cop out feature, ignore the truth, close your mind. A true imaginative mind. Go for it KMDesigner Man ignore me too, but the facts are clear, AAPL still only has 5% of PC market. Yeah, a little momentum came their way, but looks like that is ancient history.

Ho, Ho, Ho, Ha, Ha, Ha....
Print the post Back To Top
No. of Recommendations: 0
Great, the Zackl virus is back!

You want truth, check out: http://www.maccentral.com/news/9812/21.sales.shtml

In short:

"Apple's iMac was the number one selling PC through retail and mail order channels in November... The iMac's rankings have steadily improved, moving up from fourth place in August, to the third in September and second in October. This performance resulted in a doubling of Apple's overall market share, from 5 percent or below prior to August,to approximately 10 percent since the release of the iMac."

Next year (2 weeks from today) will bring more new products to drive sales and market share even higher.

"You want the truth? You can't handle the truth!"

BTW what ever happened to that great G3 killer Merced??
Print the post Back To Top
No. of Recommendations: 0
Apple's iMac was the number one selling PC through retail and mail order channels in November

Wow, amazing, one month. I have to buy that stock. I guess your another one who wants pure agreement with hugs and kisses. Sorry, amigo but one product that has been hyped up with heavy advertising does not make a good company. By the way, did you also hear that R&D has been cut since last year. So much for your new innovative products. Looks like AAPL is still a dog...
Print the post Back To Top
No. of Recommendations: 0
5% of PC market

Look at like this, Apple is here to stay, even with only 5%. Why? Think! Think Different! Who will come up with the new idea for everyone else to copy?

Peace on earth! Merry Christmas even to those of you pc owners who won't be getting a Mac this year. Sorry.

L7s

Doebaby!
Print the post Back To Top
No. of Recommendations: 0
I gotta hand it to the Motley Fool team -- this new ignore feature is awesome! Thanks guys!

Jonathan
Print the post Back To Top
No. of Recommendations: 0
Look Zackl! Fact...not fiction,

right here: http://www.maccentral.com/news/9812/21.sales.shtml

Go.

Read for yourself. Not one month. Not 2. Not even 3.

Yes... 4!. And remember, August was only 15 days of retail sales and it still got the top spot.

Fact, not fiction. Research, not emotion.

BTW, how does a rumored cut in R&D equate to an end to "innovative products"? I just don't get your logic. Enlighten me.

Fool On!
Print the post Back To Top
No. of Recommendations: 0
Hey Zackl, check out this site: http://www.MacKiDo.com/Myths/Innovation.html I've highlighted this site before, but you may have missed it.

Can you name a single "innovative product" from any other PC maker? Oh yeah, IBM had that eraser in the middle of their "fly apart" keyboard. Not a bad little idea. There is a reason they're called clones.

I think Apple could cut R&D by 99% and still lead the PC industry into the future!
Print the post Back To Top
No. of Recommendations: 0
http://www.excite.com/computers_and_internet/tech_news/zdnet/?article=/news/19981221/2178464.inp

iMac doubles Apple's PC
share


By Lisa M. Bowman
12/21/98 07:46:00 PM

Curvy computer's strong
sales have increased
Apple's market share to
10 percent.

Apple Computer Inc.'s iMac was the No. 1 selling desktop computer
through the retail and mail-order markets in November, helping to
double the company's market share in the past three months.

According to PC Data's November Retail Hardware Report, 7.1 percent of all
desktop computers sold were iMacs, and the machine accounted for 8.2 percent of
total sales in dollars.

The machine, along with a smattering of Apple's (Nasdaq:AAPL) other G3
products, boosted the company's overall retail market share to 10 percent, up
from 5 percent when the iMac first went on sale Aug. 15.

"It's not really surprising," Stephen Baker, PC Data's
senior hardware analyst said. "By coming out with a
consumer-oriented product, they really did gain some
market share."

The average selling price of the iMac was $1,226 in
November, according to the report. The machine's
suggested price is $1,299, but some retailers have
sold them for as low as $999.

Moreover, four of the top five best-sellers fell in the
$1,000-$1,500 price range, according to the report,
despite the fact that many PCs have dropped well below
$999 during 1998.

November's best-sellers include Compaq Computer Corp.'s (NYSE:CPQ) Presario
5150 at No. 2; Compaq's Presario 5170 at No. 4; and Hewlett-Packard Corp.'s
(NYSE:HWP) Pavilion 6370Z at No. 5. Hewlett-Packard's Pavilion 6355, was
the best-selling sub-$1,000 PC, coming it at No. 3.

"There's still some interest among customers in stepping up into that
$1,000-$1,500 range," Baker said. Because of that, the iMac has competed
successfully in the PC market even as prices for the cheapest machines continue
to fall, Baker said.

But Apple must continue to dazzle customers if it wants to recoup even more
market share.

More iMacs needed
"If you're going to maintain momentum, you have to have a constant flow of
products," Baker said. "I think there are a couple of important milestones
coming up. How do they make the transition once the iMac goes away?"

Apple has announced it will unveil a consumer portable in the first quarter of
next year.


L7
Print the post Back To Top
No. of Recommendations: 0


Read it and weep. 10% you loser!!!!!!!!

Too bad your not making money.


http://www.excite.com/computers_and_internet/tech_news/zdnet/?article=/news/19981221/2178464.inp

iMac doubles Apple's PC
share


By Lisa M. Bowman
12/21/98 07:46:00 PM

Curvy computer's strong
sales have increased
Apple's market share to
10 percent.

Apple Computer Inc.'s iMac was the No. 1 selling desktop computer
through the retail and mail-order markets in November, helping to
double the company's market share in the past three months.

According to PC Data's November Retail Hardware Report, 7.1 percent of all
desktop computers sold were iMacs, and the machine accounted for 8.2 percent of
total sales in dollars.

The machine, along with a smattering of Apple's (Nasdaq:AAPL) other G3
products, boosted the company's overall retail market share to 10 percent, up
from 5 percent when the iMac first went on sale Aug. 15.

"It's not really surprising," Stephen Baker, PC Data's
senior hardware analyst said. "By coming out with a
consumer-oriented product, they really did gain some
market share."

The average selling price of the iMac was $1,226 in
November, according to the report. The machine's
suggested price is $1,299, but some retailers have
sold them for as low as $999.

Moreover, four of the top five best-sellers fell in the
$1,000-$1,500 price range, according to the report,
despite the fact that many PCs have dropped well below
$999 during 1998.

November's best-sellers include Compaq Computer Corp.'s (NYSE:CPQ) Presario
5150 at No. 2; Compaq's Presario 5170 at No. 4; and Hewlett-Packard Corp.'s
(NYSE:HWP) Pavilion 6370Z at No. 5. Hewlett-Packard's Pavilion 6355, was
the best-selling sub-$1,000 PC, coming it at No. 3.

"There's still some interest among customers in stepping up into that
$1,000-$1,500 range," Baker said. Because of that, the iMac has competed
successfully in the PC market even as prices for the cheapest machines continue
to fall, Baker said.

But Apple must continue to dazzle customers if it wants to recoup even more
market share.

More iMacs needed
"If you're going to maintain momentum, you have to have a constant flow of
products," Baker said. "I think there are a couple of important milestones
coming up. How do they make the transition once the iMac goes away?"

Apple has announced it will unveil a consumer portable in the first quarter of
next year.


L7
Print the post Back To Top