[DM-MUG] Mixed Feelings

[Chris Van Cleve]

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IBM cannot produce, market, or sell any item which falls into the 
desktop computer range, this includes the typical PC and workstation 
class machines, for a period of 5 years. They are server only during 
that time. Operating system is irrelevant according to the agreement. 
It's a non-issue.

While I agree  with John Eller that learning something new is often an 
impediment in gains, it's important to bear in mind who this sub-600 
machine is aimed at:

Windows users who own iPods and have played with iMacs in the Apple 
Store and have stated they would switch if it were cheaper. These are 
people willing learn the new because they've already found how easy it 
is. These are the people who would buy a Mac as a second PC. Why is 
this group so important?

We've all been there in one way or another with some competitive 
product. In this case, the person who bought the cheap iMac for that 
integrated experience of native iTunes and native iPod starts using the 
iMac a little more each day because it just feels smooth. Eventually 
they realize they're hardly using their PC anymore and they start 
looking for ways to eliminate the need for a PC altogether. These are 
the important people because by the time they've realized this and 
purchased a real Mac, they've also ben extolling the virtues of Mac OS 
X and the Apple experience to their PC friends, who have also been 
playing around on the cheap and are opening up to it.

There are also a couple of ripple effects in this process. The sub-600 
price tag isn't aimed at the cheapest PCs on the market. Most market 
analysts will tell you to sub-800 range is adequate. The reasoning 
behind aiming at sub-600 is it puts the iMac in the same price range as 
iPods. We already know that PC users are willing to pay that for an 
iPod, why wouldn't they for a more elegant, user friendly PC?

Most iPod owners, oddly enough, are teenagers in High School and 
College. This is the same group of people who sit together in groups 
doing things like gaming. So you're over at your friends house watching 
him play a new game, and right next to him begging you to touch it is 
an iMac. You're going to try it out. Watching someone else play a game 
can consume your attention for only so long. This is a quick diversion.

There is a lot more to consider, as I'm sure you can see. The real 
question is, however, will Apple really begin producing a sub-600 iMac?

Chris Van Cleve

On Dec 30, 2004, at 11:31 PM, Matt W wrote:

> IBM has agreed as part of the sale that they will NOT enter the PC box 
> world again for a period of time. Not entirely sure about whether or 
> not that included a Windows-only stipulation...
>
> Matthew
>
> On Dec 30, 2004, at 6:46 PM, John Kisner wrote:
>
>> I think part of the rumor involves IBM taking over Apple.  Selling 
>> their PC division left them free of anti-trust worries should they 
>> want to acquire Apple.
>
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>
>

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