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October 21, 2009 12:00 AM

Apple Records Strong Quarter, Then Overhauls Mac Lineup

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On Monday, Apple announced blockbuster financial results for the most recent quarter, proving that—once again—the company appears to be immune to the economic woes that are dogging the rest of the industry. Then, the next day, it updated almost its entire Mac product line, although the company, in typical form, refused to lower prices.

Apple announced that it earned $1.67 billion on revenues of $9.87 billion for the quarter ending in September. The company sold more than 3 million Macs in the quarter, enough for 3.86 percent market share worldwide, and about 9 percent in the United States. The biggest gain, perhaps, was with the company's best-selling iPhone, which racked up 7.4 million unit sales in the quarter, up 7 percent year over year. The iPod was down 8 percent, however, with sales of 10.2 million units.

A day later, Apple wiped out almost its entire stable of Macs and replaced them with new models. The flagship iMac line was overhauled with two new 21.5" and 27" 16:9 widescreen displays, with prices ranging from $1,200 (about three times the average price of a PC) to over $2,000 (about the average price of a used car). Even in the all-in-one category, the iMac is expensive: HP sells a 20" all-in-one PC with multi-touch features the iMac lacks for just $900.

The low-end Mac mini line, which hasn't seen a form factor update in—well, ever—soldiers on with slightly faster processors and similarly high $600-to-$1,000 pricing. Curiously, Apple is now selling a Mac mini server of sorts, as well, though the lack of two networking ports limits its appeal and speaks volumes about Apple's inability to grasp this market.

On the notebook side, the previous-generation MacBook that Apple still sells to keep a foot in the bargain bin (a strategy it also sneakily employs with the iPod touch) was updated with more RAM and hard drive capacity. But the big change in the $1,000 device was the addition of a sealed, non-removable battery, just like the even more expensive MacBook Pros.

Apple also introduced a new multi-touch mouse, the Magic Mouse, which provides support for swiping gestures and multi-finger presses. It appears to work only with Macs and won't ship until November. But the Magic Mouse might just be the most compelling product Apple ships this year. I'm curious to see how well it works.

Rounding out the updates, Apple also shipped new versions of its AirPort wireless networking hardware, Time Capsule network storage devices, and—why not?—the tiny Apple Remote, which can remotely control a Mac or iPod with dock.

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Comments
  • Andrew
    3 years ago
    Oct 23, 2009

    Uh - Oh!

    http://reviews.cnet.com/2722-19589_7-314.html

  • Todd
    3 years ago
    Oct 22, 2009

    "...to over $2,000 (about the average price of a used car)."

    Seriously Paul? It's certainly higher than that. The 2 year old car I recently bought cost me 15 times that... lol

  • Chris
    3 years ago
    Oct 22, 2009

    Let me get the right level of snark going here....

    "Uh-oh"

    http://blogs.zdnet.com/cell-phones/?p=2371

  • 1
    3 years ago
    Oct 22, 2009

    "with prices ranging from $1,200 (about three times the average price of a PC)"

    So the average PC price is $400. That's funny because on Dell's web store, the cheapest PC STARTS at $399 and that does not include a 21.5" Full HD monitor. Take that bottom the barrel PC and start adding in the same components as the iMac and see what you get. Three times the average price. What a bunch of crap.

    "HP sells a 20" all-in-one PC with multi-touch features the iMac lacks for just $900. "

    Once again, go back and configure that HP machine to try and come close to the iMac specs, because the entry level model has lesser specs.

    Components
    • Genuine Windows Vista Home Premium with Service Pack 1 (64-bit)
    • Intel(R) Core(TM) 2 Duo processor P8800 [2.66GHz, 3MB L2]
    • 4GB DDR2-800MHz system memory [2 DIMMs]
    • FREE UPGRADE! 500GB 7200 rpm SATA 3Gb/s hard drive from 320GB
    • Integrated graphics - Intel(R) Graphics Media Accelerator 4500MHD
    • Slot-load SuperMulti DVD Burner
    • Wireless-N LAN card and Bluetooth(R )
    • 5-in-1 memory card reader, 2 USB, 1394, audio
    • No TV tuner
    • Integrated high-performance 2.0 speakers always included (No external speakers)
    • HP low-profile, wireless keyboard and HP wireless optical mouse
    • Microsoft(R) Works 9.0
    • No additional security software

    $1,079.99 after discount


    So the low end iMac is $120 more and it has a processor which is 15% faster (3.06Ghz vs. 2.66Ghz) and a larger screen with a much better resolution (21.5 1920x1080 vs 20.0 1680 x 1050) that is capable of full HD unlike the PC.

    Suddenly the iMacs are not expensive, and as usual Paul is full of crap. He loves to fudge the numbers when they work in his favor and its ok to make gross exaggerations, but when it comes to Mac OS X markets share, then you have to be exact and heaven forbid anyone estimate anything that is not within a percent or two.

  • Chris
    3 years ago
    Oct 21, 2009

    @infiniteloop:

    "Yes. Really."

    I'll save you a trip to the shrink. You're projecting.

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