MacBoySeattle said:
What makes it a rip off? Are you joking? They're using a defunct Core 1 Duo chip that costs 1/2 less than it did when they offered it in their original Core Duo line up 1 year ago. Every outdated component in those machines is now worth about 1/2 as much as it did, and yet the price remains the same. The 512 mb of ram shouldn't even be standard on any modern computer anymore, and 1 GB of ram is easily the same price of 512 a year ago. The integrated graphics are cr*p. The Core 1 Duo 1.83 Upgrade (while something, better than nothing) is selling now for less than the 1.66 core duo did when it came out. Infact, the Core 2 Duo 1.83 is the same price as the Core 1 Duo 1.66 was when they put it in the Mac Mini! It's an absolute RIP OFF at $799.
That leaves people like me leaning now towards an iMac because we have no other options. Which is probably Apple's scheme.
If you do not like the deal, make a different one. And I seriously doubt you have any clue as to what the actual COGS is for the Mini. So, quit projecting yourself like an informed cost analyst. The forums allow for the expression of personal opinions. But, you will often gain more respect by acting (and writing) like someone who is not trying to vent and start a personal crusade. But, maybe I am reading you all wrong. So, here is manufacturing purchasing 301.
Apple: We need to be competitive with our prices, so we need to spend the same for your processors as Dell does.
Intel: Sure, that makes sense, Steve. However, Dell sells a lot more computers than you do and they purchase our entire product line.
Apple: I understand that, but we still buy a lot of processors. But, we are not going to try and offer every configuration Dell does. As you know, we have a nice line that pretty much covers the market. We figure we have about 80%-85% coverage right now. But, to keep offering the best technology, engineering and service AND still remain profitable we can probably only aspire to 95% coverage until we get up to 12% total market share. But, there is no way we can put a Celeron in a Mac. They would kill me on MacRumors for THAT!
Intel: Right. But, we still need some way to amortize the engineering and fabrication cost AND still make a profit for every processor we make. Do you have any data on your projected usage?
Apple: Yes. I have it with me.
Intel: Thanks. It looks very comprehensive. Let me take it to my analysts and see what kind of an offer we can make.
LATER:
Intel: Steve, we have looked at this closely and think we can make you a very nice offer. Our folk have come up with statement of work and contract which should work for both companies. As you can see, we are going to want a 12 month fixed-price for this group of processors. It is the same deal Dell is getting. However, we will require you to purchase the same number of obsolete processors as Dell is required to buy.
Apple: The price is great, just what we hoped for. But, I am not happy wanting to buy the same number of processors after obsolesces.
Intel: Steve, we are allowing you to NOT buy over 1/3 of our entire line. We are selling you what are, or will be, our most popular processors. By taking more of these processors, we can get more profit by amortizing the GOGS by increasing total sales. That is how we can make this deal work.
And so the deal was reached.......
Now, this is all fiction. But, it is a very real way business is done in the world of manufacturing. I spent 18 years in manufacturing. Over that period of time, 15%-20% of my time was IT and the rest was in operations. I was in charge of production control and strategic planning/implemention. I was there for the rise and proliferation of the modern Fixed-term/Fixed-price B2B contracts. I would be beyond shocked if Apple and Intel do not have some contractual, purchasing statement of work with Intel. It is only 9 months since
'the announcement'. Eventually, a good analyst will be able to guess fairly accurately how it is put together.
Bottomline: Apple may have had move processors they were committed to buy (intended for iMacs) somewhere else - like a small upgrade for the Mini? But, they still are committed to the contract's price for ? period of time. Who knows? I doubt you do. So, before screaming about a 'rip-off', make damn sure you know it is a rip-off. If you are not knowledgeable of the facts, but are bummed by the result, just make your point and tone it down.
Um I'm sorry, as much as I hate PCs, I saw this this morning.
