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Study Finds Macs Cost 2X Windows PCs

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8:00 PM - August 6, 2008 by Tuan Nguyen

A new study released by NPD Group today says that the average price for Macs are twice as expensive as those for the "average PC." According to NPD’s study the average price for a Windows laptop has dropped from $877 to just $700 today. Although at this point, NPD Group did not reveal what laptops it was referring to.

NPD Group’s study also mentioned that the cost of the average Apple system remains above $1500 and has only dropped a measly $59 in the last two years of sales. NPD also mentions that the average price for a Mac is roughly $1000 more than the "common Windows desktop," which NPD says sells for $550. No configuration for the $550 desktop was revealed.

There’s definitely a large margin in prices for Windows PCs and Mac desktops. The issue with Apple is that while prices may be more competitive now than they use to be, there’s no major option in the mid-range for those interested. For example, while the iMac is well balanced and great for many, the higher-end Mac Pro is heavy weighted in processing power but very limp in terms of graphics and system memory.

Rumors over the last several months indicate that Apple may be introducing a tower desktop similar to the Mac Pro, with the balanced system components like the iMac, at a more affordable price than the baseline Mac Pro. Possibly called just "Mac" without the "Pro," the new system would offer users better affordability, more avenues for expansion, and no lock-down in the display category. The major drawback with the iMac systems is that customers are stuck with the display.

While Apple is quickly gaining market share, it’s total cut of the industry pie still lags far behind Windows desktops. Apple’s net gains on margins remain very high because of its pricing, and caters to the premium market. We contacted NPD Group for a clue-in on what system configuration it used for the $550 average Windows desktop it used in its study, but no comment was returned to us as of this writing.

We priced together the current Precision T7400 (the direct competitor to the Mac Pro) with similar specs as the base Mac Pro:

2 x Quad Core Intel Xeon Processor E5440 (2.83GHz,2X6M L2,1333)
Genuine Windows Vista Business Bonus-Windows XP Professional loaded
3 Year Limited Hardware Warranty with Next Business Day On-Site Service
256MB PCIe x16 nVidia Quadro FX570, Dual Monitor DVI Capable
2GB, DDR2 SDRAM FBD Memory, 667MHz, ECC (2 DIMMS)
16X DVD+/-RW w/ Cyberlink PowerDVD and Roxio Creator Dell Ed
C1 All SATA drives, Non-RAID, 1 drive total configuration
250GB SATA 3.0Gb/s,7200 RPM Hard Drive with 8MB DataBurst Cache
Dell 19 inch UltraSharp 1908FP Flat Panel, adjustable stand, VGA/DVI

Dell’s selling price for this system is $3948 ($4492 regular with discount). Dell however, includes a 19-inch Dell UltraSharp 1908FP display, which sells for $289 on its online store. We were unable to remove the display from the configuration as Dell indicated that the UltraSharp 1908FP was included in the system build. However, without the display, the purchase price would have been reduced to $3659 — for the targeted workstation space, Apple’s offering comes out cheaper. These two builds are based on current offerings from Apple and Dell. With both systems being offered with such closely related specifications, it’s clear that the systems are not for end-users and more for people doing business.

In the desktop space, we take a look at Dell’s Inspiron 518 desktop, which is comparable to Apple’s iMac offerings. In its best configuration, the Inspiron 518 comes configured as:

Intel® Core 2 Quad processor Q6600 (8MB L2, 2.4GHz, 1333FSB)
Genuine Windows Vista® Home Premium Service Pack 1
Dell E198WFP 19-inch Wide Flat Panel
3GB Dual Channel DDR2 SDRAM at 800MHz (4 DIMM)
500GB Serial ATA Hard Drive (7200RPM) w/DataBurst Cache
16X DVD+/-RW Drive
Integrated Intel Graphics Media Accelerator 3100
Integrated 7.1 Channel Audio
Dell Entry Keyboard and Dell Optical USB Mouse

Meanwhile, Apple’s baseline iMac comes with only 1 GB of memory, a 250 GB hard drive but a slightly better ATI Radeon 2400 XT for $1199 — The Inspiron 518? $749. Apple’s iMac however comes with a 20-inch LCD. Adding a E207WFP 20-inch for $234 brings the Inspiron 518’s price up to $983 — still cheaper than the cheapest iMac by more than $200 and customers are not stuck with a screen for the rest of the computer’s life.

NPD Group indicated that the drops in PC desktop and laptop prices will start to flatten out and unlikely drop further in the near future. The study indicated that competition in the Windows systems space is fierce and margin between systems remains extremely low. Apple’s margins however, remain relatively high.

With increased pressure from consumers and the industry overall, it will make sense for Apple to introduce systems in between its current offerings, which at this point leave a big gap between the low end and the high end. From the comments on Tom’s Hardware alone the biggest complaint is that people can source systems not necessarily from IBM, HP or Dell, that cost much less than the awkwardly configured Mac Pro — especially from the stand point of heavy gaming needs. For business needs, Apple’s pricing may make sense, but as many Tom’s Hardware readers pointed out, none of Apple’s offerings make any sense for them. Apple has indicated on several occasions that it would be more serious about gaming. While increased developer support in the form of dual platform releases (simultaneous Windows and OS X releases) indicate this to be true, its hardware configurations do not currently match the company’s promise. While the iMacs and Mac Minis may cater well to more casual or business users, serious gamers have clearly voiced their disgust at Apple’s pricier offerings.

Competitive Windows PC manufacturers continue to bulk up their systems with better specs to differentiate themselves instead of continuing to cut cost, have become very attractive to would-be Mac/PC decision makers. Apple on the other hand, has done little in comparison, to bulk up its specifications. Minor CPU upgrades over the last six months are disappointing to many who are interested in giving OS X Leopard a try, but are steered away from Apple’s up front costs.

My suggestion to Apple: Create several options that allow expansion, with a more balanced system spec instead of being heavy in the CPU department and lacking everywhere else. Offer a few more graphics card options and work with third party manufacturers to offer more compatible add-in cards and Apple may swing more favorable impressions from loyal Windows PC users.

While Apple may be competitive in the workstation market, its sparse desktop offerings and lack of upgrade options for the desktop leave many concerned. Apple’s prices for upgrades are also considerably more expensive than what Windows users are able to get.

Source : Tom's Hardware

Talkback
Add your comment
Anonymous 08/07/2008 2:18 AM
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-10+

so much for the mac cost misconception

anonymous x 08/07/2008 2:21 AM
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-9+

this article is by the same author?

decoppel 08/07/2008 2:24 AM
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Yeah I find this ironic.

cruiseoveride 08/07/2008 2:28 AM
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-11+

shaping up T.dawg

tuannguyen 08/07/2008 2:32 AM
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-15+

Yes, it's by the same author.

Anonymous 08/07/2008 2:37 AM
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Instead of the Dell Inspiron 518 why didn't you compare it against the Inspiron 530? For $849 you get the following specs:

Intel Core 2 Quad Processor Q6600 (8MB L2 cache,2.4GHz,1066FSB)
Genuine Windows Vista® Home Premium Service Pack 1
20 inch SP2008WFP Wide Flat Panel with Webcam and Mic
3GB Dual Channel DDR2 SDRAM at 800MHz - 4 DIMMs
500GB Serial ATA Hard Drive (7200RPM) w/DataBurst Cache?
16X DVD+/-RW Drive
ATI Radeon HD 2400 PRO 128MB
Integrated 7.1 Channel Audio
Dell USB Keyboard and Dell Optical USB Mouse

I find your choice of Dells to compare against Macs biased.

decoppel 08/07/2008 2:38 AM
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tuannguyen :
Yes, it's by the same author.



Seriously, way to man up here.

I didn't think you would but this is good to see this.

sphericaline 08/07/2008 2:39 AM
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weepee 08/07/2008 2:42 AM
Show
decoppel 08/07/2008 2:47 AM
Show
tuannguyen 08/07/2008 2:49 AM
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werasdfasd :
Instead of the Dell Inspiron 518 why didn't you compare it against the Inspiron 530? For $849 you get the following specs:Intel Core 2 Quad Processor Q6600 (8MB L2 cache,2.4GHz,1066FSB)Genuine Windows Vista® Home Premium Service Pack 120 inch SP2008WFP Wide Flat Panel with Webcam and Mic3GB Dual Channel DDR2 SDRAM at 800MHz - 4 DIMMs500GB Serial ATA Hard Drive (7200RPM) w/DataBurst Cache?16X DVD+/-RW DriveATI Radeon HD 2400 PRO 128MBIntegrated 7.1 Channel AudioDell USB Keyboard and Dell Optical USB MouseI find your choice of Dells to compare against Macs biased.



No, because the 513 has just the same specs and an even bigger gap between it and the iMac. This indicates a even better value for the end user if they went for the 513. The 513 is about $500 cheaper than the iMac for essentially the same internal hardware and is even cheaper than the 530 you mentioned. I don't think I'm being biased this time around. :)

/ Tuan

bardia 08/07/2008 2:50 AM
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This article is a bit more balanced, but I still have issues with it. The author still characterizes people who find Apple expensive as either 1) Hardcore Gamers, or 2) "Loyal Windows Users.

Many of us don't fit in either category. I use OSX, Vista, and Ubuntu on a regular basis, and enjoy different aspects of all of them. And although I'm a gamer, neither do I need any video card above the $100-$200 range. I've only payed more than $150 for a video card ONCE.

Yet I still complained as loud as the rest of them about the last article. It was gross caricature of average retail PC field, not to mention custom building, which pulls out even further ahead.

A Mac simply can't come close to a PC in advanced computer tasks for the price. Compare a Mac with my Antec Case/PS, E8400, HD4850, 4gb RAM, and RAID (Mirror) desktop in performance and options. NOTHING exists like it. To get raid for example, you'd have to hit $2800 as a base unit, and mine would still be an overall better system.

Macs have their place as idiot computers and highly specialized programming computers, NOT as mainstream enthusiasts computers.

Tuan may like Apple's offerings a lot. Great, I loved my ibook, and love my father's macbook... but seriously, I expect an editor of THG to have a little more common sense when it comes to the intelligence of his readers.

tuannguyen 08/07/2008 2:50 AM
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tuannguyen :
No, because the 513 has just the same specs and an even bigger gap between it and the iMac. This indicates a even better value for the end user if they went for the 513. The 513 is about $500 cheaper than the iMac for essentially the same internal hardware and is even cheaper than the 530 you mentioned. I don't think I'm being biased this time around. / Tuan



Er sorry, the 513 has BETTER specs than the baseline iMac for a far lower price.

/ Tuan

tuannguyen 08/07/2008 2:54 AM
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bardia :
This article is a bit more balanced, but I still have issues with it. The author still characterizes people who find Apple expensive as either 1) Hardcore Gamers, or 2) "Loyal Windows Users.Many of us don't fit in either category. I use OSX, Vista, and Ubuntu on a regular basis, and enjoy different aspects of all of them. And although I'm a gamer, neither do I need any video card above the $100-$200 range. I've only payed more than $150 for a video card ONCE.Yet I still complained as loud as the rest of them about the last article. It was gross caricature of average retail PC field, not to mention custom building, which pulls out even further ahead. A Mac simply can't come close to a PC in advanced computer tasks for the price. Compare a Mac with my Antec Case/PS, E8400, HD4850, 4gb RAM, and RAID (Mirror) desktop in performance and options. NOTHING exists like it. To get raid for example, you'd have to hit $2800 as a base unit, and mine would still be an overall better system.Macs have their place as idiot computers and highly specialized programming computers, NOT as mainstream enthusiasts computers. Tuan may like Apple's offerings a lot. Great, I loved my ibook, and love my father's macbook... but seriously, I expect an editor of THG to have a little more common sense when it comes to the intelligence of his readers.



Nah it wasn't like that at all, or at least not suppose to mean that.

What I was trying to say is that, Apple's is trying to go after Windows users, and EVEN hard core Windows-based PC gamers. If they want to do that, they seriously have to offer:

1. more options
2. cheaper prices
3. more variety of upgrades
4. more partnerships with 3rd party vendors like graphics card makerse
5. lower systems that aren't permanently tethered to a display
5. lower systems that aren't cramped into a box with no avenue for upgrade

The problem with Apple is that all their affordable gear is locked down. That's a problem.

/ Tuan

Slobogob 08/07/2008 2:56 AM
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-10+

Ah, the winds of change...


Repent! Repent! Repent!

zunaro 08/07/2008 2:57 AM
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"My suggestion to Apple: Create several options that allow expansion, with a more balanced system spec instead of being heavy in the CPU department and lacking everywhere else. Offer a few more graphics card options and work with third party manufacturers to offer more compatible add-in cards and Apple may swing more favorable impressions from loyal Windows PC users."

I agree 100%, I have considered giving OS X a spin, but the price and limited options make me consider the validity of the choice. I wouldn't mind trying it, but at the same time don't want to be bit in the backside and end up with something that doesn't suit my needs properly.

Anonymous 08/07/2008 2:57 AM
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Lenovo will sell you the same setup (except - larger HD and nVidia video rather than ATI) for $3057, or $700 cheaper than the Dell. Still $250 more than the Apple...

...except that Lenovo includes 3 years of next day on-site warranty. Apple Care is another $250 dollars, bringing the price difference to a whopping 10 dollars. Lenovo's warranty docs include time guarantees... Apple says they'll send someone, *if* you're close to an Apple store, with no word on when they'll show up.

The Mac Pro isn't obscenely overpriced like the laptops are, but it's only cheaper if you don't bother comparison shopping.

JTWrenn 08/07/2008 3:02 AM
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tuannguyen :
No, because the 513 has just the same specs and an even bigger gap between it and the iMac. This indicates a even better value for the end user if they went for the 513. The 513 is about $500 cheaper than the iMac for essentially the same internal hardware and is even cheaper than the 530 you mentioned. I don't think I'm being biased this time around. / Tuan




So you were biased the first time around?

spaztic7 08/07/2008 3:04 AM
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--3+

Can we say, told you so?

Other, please view these:

http://www.tomshardware.com/forum/ [...] w=0&nojs=0

http://www.tomshardware.com/review [...] ,1985.html



I vote no confidence in THG.



*UPDATE*
I chose on my own will to strike what I said because it was wrong for me to do what I did and make a remark as such against THG. It is not THG that the comment should have been against, but the people who are defending their distorted point of view about Mac's not being more expensive.

tuannguyen 08/07/2008 3:07 AM
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JTWrenn :
So you were biased the first time around?



I may have been?
The point here is this:

I spent a considerable amount of time last night reading through each and every comment. Although, there were so many that I couldn't reply to any of them directly anymore. Many of them wanted me dead anyway.

The outcome of that thinking and observing everyone's comments is this: My original article had a different argument, one that was something along the lines of "can you build the exact same spec, feature for feature, as Apple, for cheaper?" With that, the answer is not that much cheaper.

According to the feedback I observed however, people were essentially saying "OK. But that does not equal Macs not being over priced."

So I took a closer look at everyone's concerns and went to price out workstation for workstation, desktop for desktop. And the bottom line, desktops, Apple loses. Hence this article.

/ Tuan

spaztic7 08/07/2008 3:15 AM
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Sorry about my other post. I stooped to the OP and authors level, I wont ever do it again.

JTWrenn 08/07/2008 3:18 AM
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You know I just don't think you get the point when you are looking at pc's to match the hardware. You can't just check Dell....that is silly. I mean did you even look at HP, or Gateway, or well anywhere? Did you look at the HP xw8600? A system with almost the same hardware for $2369?

If you really want to do a comparison of Macs to PCs, you need to take at least 3 prices of similar hardware, and get as close as you can, even if you need to add to the Mac system. You almost have to add the warranty because all real workstations come with a 3 year warranty.

Go take 3 samples of each category you are comparing and average them. You just need one from Mac because well, they are not a category of computer they are a manufacturer. But if you don't pull from at least 3 manufacturers on the pc side your numbers don't mean a thing.


So far you have only argued about how a Mac stacks up against a Dell.

Just in case you didn't know....Dell is not the only PC maker. I know..strange huh?

tkphill 08/07/2008 3:25 AM
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Quote :Although at this point, NPD Group did not reveal what laptops it was referring to


I would assume that the article says AVERAGE price means of all the laptops (high end and low end combined) from all manufacturers as compared to all the apple laptops sold.

the question should be where did the pricing info come from? they did not look at a specific combination of equipment only the price period

JTWrenn 08/07/2008 3:26 AM
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tuannguyen :
So I took a closer look at everyone's concerns and went to price out workstation for workstation, desktop for desktop. And the bottom line, desktops, Apple loses. Hence this article./ Tuan



And then you just looked at Dell's....that is fairly weak research.

Claimintru 08/07/2008 3:27 AM
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Even though most consumers buy their computers from retail outlets, some of the best price comparisons are found from "build it yourself--kind of" vendors like Cyberpower, etc. Can get higher performing parts at a lower markup than you would from any retail store. Mostly because retail pc's are built to be average at best and any deviation from that = extra work for them.

But comparing to a vendor that lets you individually customize parts (Dell doesn't count because of them doubling prices on everything) Will really make the gap evident.

tuannguyen 08/07/2008 3:28 AM
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JTWrenn :
You know I just don't think you get the point when you are looking at pc's to match the hardware. You can't just check Dell....that is silly. I mean did you even look at HP, or Gateway, or well anywhere? Did you look at the HP xw8600? A system with almost the same hardware for $2369?If you really want to do a comparison of Macs to PCs, you need to take at least 3 prices of similar hardware, and get as close as you can, even if you need to add to the Mac system. You almost have to add the warranty because all real workstations come with a 3 year warranty.Go take 3 samples of each category you are comparing and average them. You just need one from Mac because well, they are not a category of computer they are a manufacturer. But if you don't pull from at least 3 manufacturers on the pc side your numbers don't mean a thing.So far you have only argued about how a Mac stacks up against a Dell. Just in case you didn't know....Dell is not the only PC maker. I know..strange huh?



JTWrenn :
You know I just don't think you get the point when you are looking at pc's to match the hardware. You can't just check Dell....that is silly. I mean did you even look at HP, or Gateway, or well anywhere? Did you look at the HP xw8600? A system with almost the same hardware for $2369?If you really want to do a comparison of Macs to PCs, you need to take at least 3 prices of similar hardware, and get as close as you can, even if you need to add to the Mac system. You almost have to add the warranty because all real workstations come with a 3 year warranty.Go take 3 samples of each category you are comparing and average them. You just need one from Mac because well, they are not a category of computer they are a manufacturer. But if you don't pull from at least 3 manufacturers on the pc side your numbers don't mean a thing.So far you have only argued about how a Mac stacks up against a Dell. Just in case you didn't know....Dell is not the only PC maker. I know..strange huh?



I absolutely agree, just not much time today to do a grand follow up with more in depth digging and research. I wanted to do a quick 1 pager follow up concerning the over priced complaint. So I only really had time to look at Dell.

However, since Dell and others like it compete in similar spaces, I would not be surprised if the outcome of other manufacturers presented the same picture, that: Apple is getting mopped up in these categories for desktops:

- Same or better hardware for less
- Apple has no enthusiast or gaming options
- Even in mid-range options, Apple has none (so far)
- In low cost areas, Apple has some offerings but stab themselves in the foot by locking down the ability to upgrade either the hardware or the display (i'd never buy an iMac for this reason. A display is a critical investment area that can and most often times outlasts the life of the computer its attached to)
- Apple saying it's serious about gaming, but none of its hardware configurations indicate so (that's why I still play games on my PC)

Apple may be cheaper at times in some areas, but from the looks of it (I looked!), it's really getting a beating in the desktop space -- arguably the biggest space of them all.

/ Tuan

tuannguyen 08/07/2008 3:28 AM
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-0+

Er... gxsolace ? Got a comment to add in copying my comment?

gxsolace 08/07/2008 3:29 AM
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JTWrenn 08/07/2008 3:31 AM
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Final point. The whole reason Mac is overpriced is because they are the only place to get Mac OS X on your hardware legally. Only looking at Dell completely negates the primary strength in the pricing of PCs...competition.

You should take a week, put something in depth together and then come back. Also, you realize you were primarily going against a NPD research article right? You went after a research paper with one day of research? Bad move. I know it was knee jerk to the flack you got yesterday, but why even bring up the NPD info then?

You should take a step back, think about it, and then come back with solid info properly researched. That is the cornerstone of Tomshardware.com.

tuannguyen 08/07/2008 3:32 AM
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-1+

gxsolace :
yeah to show you are letting fools eat your dust?



What?

waffle911 08/07/2008 3:33 AM
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--1+

Hopefully 10.6 "Snow Leopard", which is supposed to make it ridiculously easy to develop software for the Mac, will help more hardware companies make drivers that are compatible with Mac. I wish.

That said, the study does neglect the statistic that within the Mac price range, the majority of systems sold are Macs. More people who are willing to spend more money on a new computer are also willing to forgo extra performance for the "Mac experience." For people who don't need more performance, that might seem like a fair trade-off.

The whole "average price" thing is a real flaw as well, as the models that bring the average to $500 or whatever (especially the laptops) don't directly compete with Apple systems performance-wise. You gotta spend at least $800 to get something competitive, maybe even $700.

So at most "twice as expensive" comes with at least 1.5X the performance/feature set.

That said, I will be looking to buy a MacBook Pro for school next year, but I also plan on building a dedicated gaming rig. Vista's not so bad really, but I'd still rather have OSX for everyday computing. If nothing else I can still sell the MacBook Pro later on down the road and still make some money back from it.


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