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The article takes it on faith that the current margins Apple has can't last. Maybe I missed the part of the article where they back that up, but overall it seems like Apple's done a bang-up job selling (the perception of) lack of computing misery for a premium. If people want to pay extra to have the experience debugged for them out of the box, good for them, and great for Apple.

That quoted blurb from Wilcox about the Apple announcement of dropping product margins ignored the other parts of that announcement, when they also said they were planning on releasing a new product. Maybe the Macbook is staying upmarket and the new product is going to be a low cost / high volume machine that would eat into the cheaper machine segment.

It would actually be quite novel (for the PC business) if Apple was intending to invest in their brands and move them up and out instead of down and out. The Mac Pro (formerly known as a Power Macintosh), as a nearly $3k, 8 core Xeon desktop, has been positioned as an ultra-premium product that is suitable for only the highest level users, the MacBook Pro (formerly known as a PowerBook) is holding the cost line and too expensive for anybody but professional users or monied geeks. The MacBook is currently the laptop a non-geek would buy, but Apple has not addressed the lowest mobile market segment, which probably should be considered the sum of the cut-rate laptop market and the eeepc-type market.

This is a pretty common strategy in the automobile industry. The current Honda Civic is larger than the first generation Honda Accord. The Honda Fit slots into place where the Civic used to be. Honda has spent decades moving brands upward, keeping them relevant to their customer base and fixing segment gap with new vehicles that are the right size and marketed toward the appropriate people.

It's nice to see a tech company market their products more like major investments (Honda Pro) than like disposable consumer goods (Gillete Mach 8 Vostro 2100xblqi).

tl;dr: Apple cares about their brand -- don't expect to see a $500 MacBook, Apple probably will create a new product to combat the threat in the article.



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