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• Wolfgang Gruener What is it: 2007 Apple iMac, MacBook, MacBook Pro, MacPro, Mac mini; Dell Dimension C521, E521, Inspiron 1501, Latitude 131L, OptiPlex 740 Why we chose it: Let's start with Apple. There are friends who you never thought could be friends. If you are an Apple aficionado and have visited Steve Jobs keynotes in recent years, then you probably know all too well how those Power-whatever machines drove those mighty Xeon machines in the ditch and smoked one Photoshop benchmark record after another. There was lots of strange schadenfreude against Intel and unshakable enthusiasm for Apple, which you just knew would last for an eternity. But here is 2006 and Steve Jobs and Paul Otellini are best friends. How did that happen? You could speculate that Apple really did not have a choice in times where the Power architecture was outmuscled not only in terms of performance but especially in power efficiency and Apple was in dire need of a different supplier. We are still a bit dazzled that Apple went with Intel and not AMD, as the green team, at least from our view, would have been a better fit for the mentality of the Apple camp. But then, Steve Jobs has the kind of sales talent every company would kill for. Jobs could tell us the snow is black and we'd all believe it: In that view, the Intel proposition was really child's play. Nevertheless, the bottom line is that Apple made one gutsy move that could have resulted in a riot in the Apple crowd. The numbers, however, prove that it was the right decision. The company sold 30% more Macs in the most recent quarter (1.61 million) than a year ago (1.24 million). Plus, the user benefit is obvious: Besides more performance, Mac users get closer to a wealth of x86 applications and Windows guys have a real chance of getting their hands on a cutting edge-style machine without having to move to an entirely new system. We patiently will wait for the final version of the Bootcamp software. Dell-AMD Finally! Jeez, Dell, what took you so long? It appears that everyone always knew it was a matter of time when Dell couldn't resist the pressure of consumers asking for AMD anymore. I remember asking a PR representative in 1999, if AMD wouldn't be a great move for Dell and I heard the same "we are always evaluating other technologies ..." phrase then as I did earlier this year - when an analyst floated the rumor that a Dell-AMD announcement was very likely for this year. I discussed this topic with many tech journalists, including Charlie Demerjian from the Inquirer and we were quite certain that Dell would not go with AMD this year. A major concern was AMD's potential production capacity, which was rumored to be running around 90%+ even without Dell being a customer. Charlie was confident enough to put a bet on it against VoodooPC president Rahul Sood. I chickened out and turned Rahul's offer to join Charlie in this bet down, luckily, I have to say. As we know today, the Dell-AMD announcement came and Charlie had to do his IDF coverage in a bunny suit. But, if you remember, even Intel appeared to have been caught on the wrong foot: In a rather memorable email to Intel employees, Intel CEO Paul Otellini expressed his disappointment over Dell's move. But in the end, Dell had little choice, but to offer AMD processors to its customers. Starting with 4P servers, it was obvious that demand for Opterons were skyrocketing and HP and Sun were grabbing market share from Dell, practically unchallenged. Moving down the ladder to the desktop and notebook came a bit late, but was a natural extension of this strategy. Rumor has it that Dell used its bold AMD announcement to negotiate new prices with Intel, but - true or not - there is little doubt that Dell has made the right decision for its customers and itself - we just wish the company would have made this move three years earlier. What it means to you: More choice for everyone, that's what this industry should always be about. Bridges were built this year, enabling new products strong enough to be considered part of the most significant hardware announcements in 2006. The AMD-Dell announcement (we should not forget that Lenovo also adopted AMD) is especially significant, as it will strengthen AMD: A stronger AMD will promote healthier competition, in which AMD will be able to not only tease Intel once in a while. The result should be more innovation in the microprocessor segment than we have seen before, especially with ATI now being part of AMD. Predictions for 2007: Keep an eye on AMD becoming much more visible in the Dell lineup. Today, Dell is selling AMD mainly in entry-level configurations. Don't be too surprised seeing AMD's new processors, Kuma and Agena/FX, in the company's XPS series of notebooks and desktop computers. Apple is a tough one. People went bankrupt over betting on Apple products for the new year, so I will be very careful here. But I will say this: Apple will build a breakthrough entertainment PC based on Intel processors, it will roll out quad-core enthusiast Macs with more graphics capability and it will offer an UMPC-like touchscreen mobile computer, based on Intel ULV processors in 2007. Article Coverage: Apple announces Intel-Macs Dell's AMD computers now available Paul Otellini "incredibly" disappointed by Dell decision

• What you will see at CES and MacWorld

  The Consumer Electronics Show is coming up in a few short weeks (Jan 8-11). It can be a very depressing show because it effectively showcases just how much of the stuff you got over the holidays will soon be obsolete. Apple isn't at CES but won't make its customers sleep well either: The company is expected to announce a bunch of new products during MacWorld (Jan 8-12). Fortunately, you don't have to go to either show and can watch the blow by blow from the comfort of your own home. The Internet takes away the pressure to run around like crazy while trying to figure out what is, or is not, important. One of the treats of being an analyst and a CES judge is that you get early invitations from a variety of vendors that will give you a heads-up on what they will be promoting on the showfloor. Based on these details, you can make some determination what could be hot. Both shows, by the way, will have a huge consumer electronics focus this year. This is normal for CES but for Apple, this is the coming out party for their iTV, iPhone, and - you guessed it - yet another wave of iPod accessories. Since the Vista release draws close, Apple is expected to make a big Leopard announcement to counter what Microsoft will be talking about at CES. But there is going to be lots of other buzz as well. Displays grow, get LEDs and go wireless Current LCD displays use a fluorescent type of backlighting, which lasts between five and seven years and tends to wash out in very bright light. This is true of both monitors and LCD TVs. As Plasma makes its swan song in the market, expect to see a number of LED lighted LCD TV's and monitors showcased by the major brands for release in the second half of the year. Apple likes to go early with technologies like this, but this may be too early even for Apple. But they could have a surprise in this category, so keep your eagle eyes open. Display sizes are going up across the board with 46" LCD TVs going mainstream. There is a strong possibility we will see sharp price drops for TV's above 50". 24" monitors were the hot size this year; however, massive price drops year-over-year show that the next size up is 30". Dell currently has the most aggressively priced product in this category, while HP seems to lead with features. Apple trails and it is about time for Apple to give a more competitive response. In TVs, look for a big jump in wireless connectivity solutions. Unfortunately, you'll still have to plug them in but there will be a huge jump in the number of technology vendors showcasing capabilities that may make many of the cables connecting TVs to set top boxes obsolete resulting in much easier installations going forward. There is a possibility that we may see some LED lighted TV projectors but, for now, that is just a rumor. TV sound is going to get a huge boost. Advanced built in speakers will provide much stronger low end capability without separate sub-woofers and the technology that can make front speakers sound like they are behind you is expected to get more visibility at the show. Media Centers to Media Servers One of the big problems with PC-based Media Centers is they are relatively hard to set up and use. AMD has already started to showcase a Media Center design which is vastly easier to set up, because it has a built-in amplifier. In addition, AMD and other vendors have been hinting at building products using embedded versions of Linux and Microsoft technology to address the ease-of-use issues. Cisco is expected to be, either publically or quietly, showcase a product due late next year, which is based on an enhanced version of its Scientific Atlanta set top box technology. Code named "Cable Bypass Box," it is expected to light a fire under Internet-sourced high definition content. CES will be awash with Vista Media Center PCs. At least one will have a built-in amplifier and from what I have seen, it is as stunning as expensive. Some will use touch screen input and several of the designs look more advanced than, for example, Apple's iMac media solution. Apple will be showcasing its iTV and the question will be how it connects to other devices. Speculation is that there will be a special version of the Mac Mini configured to collect and share content. In addition, there is something apparently going on between Apple and Intel's Viiv initiative and that could result in a unique offering from both companies. Finally, a new class of product will emerge at CES, called a Media Server (we have already started to see products like this from companies like Maxtor). These products will collect and serve up media not only to the home but those that are traveling away from home as well. Eventually embracing functions from Home Automation to security and backup, this has a lot of vendors very excited right now. Watch for content deals that will define this space. The best hardware is worthless if it doesn't have content to play on it and the studios have not been on the same page with this stuff at all. Google and YouTube are expected to be big players in the future of these devices. Automotive Stereo Look for aftermarket products that now combine both sound and video. In addition, some of the more expensive devices will connect to wireless networks so they can update their repositories and we may be seeing the beginning of the end for CDs (actually that probably started when the first iPod shipped). Enhancements with both in car and handheld GPS products are expected to be seen from a variety of vendors. Integrated systems will more effectively update themselves for changing traffic conditions and be even more capable of calling for help when the driver is in trouble. In car displays will be getting both larger and cheaper and, here too, expect to see some with LED backlighting and an increased use of touch screens.

• A problem that has plagued the x86-based Windows world of late is that of high power requirements. This has been especially true of systems based on current Intel processors , a fact we already covered extensively in previous articles. During testing, our Mac mini was able to shine in this respect, drawing a mere 20 watts of power; during DVD playback, this rose to only 28 W. In contrast, the power requirements of current Intel-based PC systems is anything but reasonable - under comparable conditions, these power-hungry machines draw up to 160 W , as tests in our THG lab have shown. Strictly speaking, the Intel system's 700% higher power draw (!!!) is not justifiable, considering today's energy costs. And users should definitely be considering the energy cost to run a computer, not just looking at the price tag on the machine. Corporate users, especially, need to think about long-term total cost of ownership (TCO). Great Sales Through Clear Design As a company, Apple's star does seem to be rising, at least where sales and profits are concerned. The last fiscal quarter was the best in the company's entire history. Apple owes a large part of this success to its trend-setting MP3 player, the iPod, which has reached a kind of cult status, selling more than 10 million units. Now, the new year is starting off with new products, such as the Mac mini and the iPod Shuffle. In Germany, as in most of the rest of the world, the classic PC sales strategy is simple - lure the buyer with high gigahertz numbers, tons of megaBytes and additional goodies. Yet despite the introduction of SFF (small form factor) PCs, it seems that design and the overall look still seem to be only of secondary importance. For years now, the average buyer has been fed the mantras of "high performance" and "good upgradeability." Obviously, the Mac mini has taken a completely different approach here, emphasizing compactness, style and simplicity. On To Further Successes In 2005 After The Record Year In 2004? Interested in a few numbers? In the fourth quarter of 2004, Apple sold 4.5 million iPod players, resulting in sales of $1.2 billion. This makes for an average price of $375 per unit - not bad at all for an MP3 player. The company's overall sales in 4Q04 totaled nearly $3.5 billion, an increase of 74% compared to the same quarter in 2003. Also, it has been able to sell more computers in the first quarter of this year: 1,046,000 units, again a 26% increase over the same period in the previous year. This resulted in profits of $1.6 billion. Apple sold 456,000 of the new iMacs alone. However, the Powerbooks have not been doing so well - 152,000 units sold means a decline in sales by 22% compared to the first quarter of 2004. iBooks, on the other hand, have gained momentum, selling 271,000 units, an increase of 35%. The "other music products" branch, which includes the iTunes music store and iPod accessories and services, is also very lucrative, with sales totaling $177 million, a 277% increase over Q1 '04.