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Stephen Baker: Drop the MacBook below $800

by Megan Lavey-Heaton Mar 11th 2009 at 12:00PM

Stephen Baker, Vice President of Industry Analysis for The NPD Group, released his analysis of Apple's sales trends following the recent release of January sales figures. In his opinion? If Apple keeps up its current pricing strategy, it's going to flounder in today's economy. The solution? If Apple can't produce a netbook, then slash the price of the MacBook down to $799 in order to bring a mainstream price to a high-end product.

How low can you go? Discussion on this article behind the scenes here at TUAW resulted in the observation that if you drop the price too much, you'll wind up diluting the brand itself. Apple commands higher prices, but it also has the product to back it up -- and it has made some price concessions. You can pay $999 now for a better MacBook than I paid $1399 for just 15 months ago, and one that will last much longer than most PC notebooks on the market. Drop the price too much and not only will the brand get diluted, it'll spark even more fears that something is wrong with the company. There's a fine line between premium and cheap, and a lot of that is psychological.

Personally, I would also think less of Apple if it jumped on the netbook bandwagon just because everyone else did. It didn't even venture into the smartphone market until it could develop a device that not only blew away the competition, but changed the cell phone industry itself. If Apple is going to produce a netbook, then let it produce one that'll stand out and won't get lost among the Acers, Dells and eeePCs out there. But, don't slash MacBook prices to compensate for the lack of one either.

What are your thoughts on Baker's observations? Let us know in the comments.

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Stephen Baker, Vice President of Industry Analysis for The NPD Group, released his analysis of Apple's sales trends following the recent...
 

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jonny appleseed

2shae, the Acer is a piece of crap.

March 13 2009 at 4:45 PM Report abuse rate up rate down Reply
2shae

He might be true.

I would buy a Macbook voor $799 but not will never buy one for $999

Still to expensive compared to let's say an Acer laptop.

March 12 2009 at 10:40 AM Report abuse rate up rate down Reply
frank.lowney

Apple has the capability to produce what I would call a neoNewton. It will look like an oversized ipod touch, have a camera, mic and some novel input schemes that extend the virtual keyboard and the whole touch input concept in very interesting ways.

This would be the high road that Apple prefers but, who knows, with Steve on medical leave the possibilities are less predictable. That's right, I don't believe that Apple leadership has been inculcated with the inscrutable values of Steve Jobs.

We'll see soon enough.

March 11 2009 at 9:29 PM Report abuse rate up rate down Reply
Bones3D

Well, from the sound of this article, it seems like Apple would sacrifice hardware quality before reducing prices, because a price reduction would be more harmful to the market than a higher system failure rate.

In the meanwhile, Apple can be my guest and hold out on the netbook market (well, unless you count the Macbook Air or the eMate...) as long as they want. It gives me more time to mod my $250 Acer Aspire One to run 10.5. (Feel free to complain about the EULA nonsense... I already gave Apple my $120 entry fee.)

March 11 2009 at 9:24 PM Report abuse rate up rate down Reply
1 reply to Bones3D's comment
Risto T

You buy OS X when you buy your mac.

The copies of OS X that are sold in boxes are sold with the understanding that they are only useful to people who already bought a mac with OS X.

If you get my drift, store bought copies of OS X are effectively sold at an upgrade price.

Unless you mailed a cheque to apple for around lets say $350 (seem fair?)
You haven't paid your entry fee.

March 12 2009 at 1:32 AM Report abuse rate up rate down Reply
david

Since I actually work for a school district that uses both Macs and PCs I can speak to longevity. We have an official policy of replacing computers on a 5 year cycle. The Macs in our computer labs get replaced every 5 years. Our tech students refurbished the replaced computers which are sold to teachers and generally wind up in their classrooms for several more years. The PC labs are not replaced every 5 years because by the end of the 5 year period every computer has already been replaced - usually before 4 years have elapsed.

March 11 2009 at 8:30 PM Report abuse rate up rate down Reply
Neil Anderson

Twenty-eight billion in cash says you don't have to play by Dell's rules.

March 11 2009 at 8:06 PM Report abuse rate up rate down Reply
David

Those that can not do try to analyze, write, and teach those that can do!

March 11 2009 at 6:34 PM Report abuse rate up rate down Reply
1 reply to David's comment
mi_sat

You're retarded and you likely bag groceries for a living.

March 11 2009 at 6:43 PM Report abuse rate up rate down Reply
miguel

so someone tell me .. .how is a white macbook a high end computers .... also .... looks like computers sales are falling fast ... it will be interesting to see what happens in the computer world the next year.

March 11 2009 at 4:29 PM Report abuse rate up rate down Reply
mannyv

Apple analysts always seem to try and second guess Apple. Guess what? Analysts have been mostly wrong. Why is this guy any different?

March 11 2009 at 3:57 PM Report abuse rate up rate down Reply
Dominic

I bought an asus laptop at bestbuy for $799 blows away the current $999 Laptop apple has. I think they need to drop the price just to stay needed

March 11 2009 at 3:48 PM Report abuse rate up rate down Reply
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