Good News: Apple eyes Mac will cut price

Apple could be getting ready to cut prices on iMacs and MacBooks, according to a report.
Does Apple really have MacBook pricing cuts in mind?
AppleInsider is reporting that Apple plans to introduce less-expensive versions of its two most popular Macs at some point over the next several months. It's not clear how much of a cut Apple has in mind, or whether it plans to offer more value at current prices, but Apple has apparently decided that it wants to hedge its bets against a proliferation of cheap Netbooks over the last year or so, according to the report.
Mac pricing has certainly been a big topic over the last several months, as Microsoft has aggressively pushed the notion of the Mac as an expensive bauble unfit for recessionary spending. Apple responded to those ads with its standard message that Macs are more capable than PCs, therefore PCs aren't quite the bargain they appear to be.Times have changed since then. Apple's Mac shipments declined year-over-year for the first time in several years during its second fiscal quarter as certain PC vendors--such as Asus and Acer--improved their shipment totals on the back of cheap Netbooks.
If this move is really a response to the Netbook phenomenon, then I think it's a mistake. Netbooks provide a cheap basic computing experience, but whether they will turn into a long-term alternative to full-sized notebooks is far from certain.
IDC estimated that 11 million Netbooks were sold in 2008, and is predicting that 21 million will be sold in 2009, out of an overall worldwide PC market of around 300 million units. If those people are deciding to buy Netbooks simply because they are cheaper, then they probably weren't going to buy a Mac anyway. If they are buying them because they want that compact computing experience, they weren't going to buy a Mac either.
It's possible that Apple may just have promotional pricing in mind as it enters the educational buying season this quarter and the back-to-school buying season next quarter, two of the most important Mac sales periods of the year. Limited promotions could buy Apple some time to get its response to demand for a cheaper, more compact computer--the Mac minitablet--out the door while still preserving its Mac product line margins for a time when consumers are more confident.
Apple not only needs to lower costs because of the increasing volume of netbook sales, but also because Windows 7 is coming out this year and will be much more of a direct competitor than Vista or XP. In a competitive market, you have to price for the Delta between what yours does vs. theirs. Windows 7 will make existing Windows users remain Windows users. And it will beg the question of new users; Why choose Mac?

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