Apple’s $99 per year for .Mac asking too much?

Apple’s .Mac service, is “a $99-a-year collection of online tools released in 2002 featuring 10GBs of file storage, Web site hosting, and photo sharing, among other things,” Tom Krazit writes for CNET.

“Apple has designed .Mac to work very closely with its Macs, and updated it last year with additional storage and hooks into the latest version of iLife. But Apple charges far more than competing online services, which offer many of the same services for free or for a nominal charge,” Krazit writes.

“The art of business–even in a Web 2.0-gone-mad world–has not yet evolved to the point where giving your product away for free always makes sense. Maintaining a storage and networking facility costs real money,” Krazit writes. “And why give something away for free when people are willing to pay something–if not $99 a year–for a service?”

“Of course, Apple’s financial performance isn’t exactly hurting these days, so it’s not like .Mac is a huge drain on the company,” Krazit writes. “But the company is letting price get in the way of a service that could be a unique selling point for its hardware: the real profit engine at Apple.”

Krazit writes, “Apple could turn .Mac into a real selling point for its hardware if it cut the price in half to $49… Or, Apple could give away a free year of .Mac service with the purchase of a new Mac. That’s the drug-dealer strategy: the first one is free. After that, once you’ve put all your images and videos on the .Mac service, $49 a year won’t seem like much to keep that service running. Apple does provide a 60-day trial period for .Mac services, but that’s not enough to get hooked.”

Krazit writes, “Grocery stores sell basic items like tuna fish and bread at razor-thin margins, because they know people are likely to pick up a few other things while they’re at the market for the basics. Apple has an opportunity to do the same thing with .Mac, and it won’t have to give away the store to make it happen.”

Read more in the full article here.

87 Comments

  1. I’m always able to find the renewal for $20 less online or so I don’t really have a problem paying $70 or so.

    I use it for all kinds of things like large file transfers in addition to photo sharing, downloads, work groups, calendaring and so on.

    And while the service works pretty well most of the time, I worry if they opened the ‘free’ floodgate it might slow it down, and when it’s slow, it’s really slow.

  2. In the uk, bt offer something called home vault, its half the amount of storage on line as .mac (5GB vs 10GB) no imap, no website, no leaning center, no web gallery, no back to my mac, how much of it you use determins its value to you, but its not expensive. Also We all know of other individual cheaper services offering similar things but Its very easy to set up and well intergrated, geeks take there knowledge for granted but to someone not to tech savvy ease of use and intergration are priceless.

  3. I get a lot out of .Mac. No complaints really about the price, but hey, I wouldn’t mind if Apple cut the cost down by a few bucks either.

    I do appreciate the functionality improvements in recent years. One example is the ability to create and edit web galleries easily from within iPhoto.

  4. $99 is far to much!!! I agree 100% with Rob: $29.95/year.

    And for that amount, they should provide a .Mac portal website with (licensed) articles, (licensed) audio/video media content and Apple web services for business people, designers, etc. The same type you find on Harvard Business Review. The kind of articles and services and services worthwile you paying for. Otherwise, you might as well go with your Yahoo, Hotmail or Gmail account.

  5. .Mac syncing and online storage has paid for itself time and again. I have multiple Macs and having them all stay in sync effortlessly is awesome. I’ve even set up my own user accounts on friends’ Macs and had all of my email and data (via Yojimbo) on there, as well.

    Add in the email and simple backup (prior to Time Machine) and it’s easily worth the money.

    People will never be happy paying for packaged services when they only see themselves using a part of it.

    I think Apple should provide all Mac users with a free .Mac account, and then they can add on services on an a la carte basis. That would be more flexible and affordable across the board.

  6. @Rob
    Have you ever put up a website before? It’s not free to just slap up a site on some domain. $30 would be ridiculously small though would make many happy and probably more to sign up.

    You can go on amazon and get an account for $20 less if you don’t like the $100 yearly. I do web development and I think 80 is a very reasonable price since thats what I paid before for a year of hosting through a place that didn’t offer stuff to work with my mac.

  7. Increased volume by offering it for free with a registered purchase only would pump their knowledgeable reachable database plus guarantee a taste of the total Mac experience. But only based upon a much improved feature rich upgrade. Lose shortterm in order to win longterm.

  8. Definitely too much. If they really want to expand their base it should be free for the first year, no restrictions, to coincide with the standard warranty.
    After that they should bundle it into the Applecare Protection Plan, either as a standard feature or an upgrade over the basic plan. When it expires, consumers have the option of paying the yearly subscription fee or buying a new mac.
    Many of them will use it as excuse to upgrade, making it a win/win for Apple and it’s customers.

  9. “But the company is letting price get in the way of a service that could be a unique selling point for its hardware: the real profit engine at Apple.”

    This guy said it all. At $99, Apple will never, never, never have my money. Dropping the price to $29.95 however, and adding more web services, would attract people like a magnet.

    Think about .Mac providing more services than a Yahoo, a Hotmail or a Gmail account, better designed and free of those stupid ads for something like $2.49/month!!! Which Mac computer user would say no??? None!!!

  10. Seems that those who cry for less fees on .Mac are those who only use it for storage. Geeze. If that is all I used it for then it would not be worth it. Look at ALL .Mac supplies before calling it too expensive. I would like it to be cheaper too, but not at the “expensive” of reliability.

  11. I am not sure why I need .Mac. I have a gmail account, so, email is covered. I take my notebook with me when I travel. I have a time capsule for backups. Gmail gives me almost 7M of storage for free.

    .Mac seems like a hassel without a payback. What would I need it for?

  12. Why not $49 per year?

    Apple should include free for the first year you own a Mac.

    Or throw it in with cost of AppleCare.

    People will get hooked on it, then renew when it runs out.
    OR just keep buying new Macs to keep their .Mac service going uninterrupted.

  13. I bought a 1 year subscription with my new mac and the first thing I noticed is that the various ‘parts’ of the service (idisk, e-mail) are not immediately available but take about 15 minutes to activate while in the mean time generating error messages. Very confusing.

    The idisk service (file transfer) is slower than my ancient 9600 baud modem and of no use to store larger (more than 1 mb) documents. I hope that will improve.

    All in all a service I find that it could be very usefull and indeed worth 99 euro’s a year if it were decently implemented. As it is I’ll just keep my Amazon S3 and Jungledisk, and external e-mail.

    That gives me all I need (imap and idisk) at a fraction of the cost.

  14. The cost is way to high right now. First one can get an eMail account from a number of providers free of charge. Second hosting prices are coming way way down and some photo sites actually let you host shots there. Finally the storage is no bargain with the cost of external drives dropping rapidly.

    Apple could add value by extending Apple Care for a few months or allowing users to download additional free tools or templates for iLife products.

  15. I gave up on it a long time ago. Sure I like the email and the syncing, but not enough storage and limited web capabilities.

    I’ll stick with Google Mail, Calendar, and Flickr. Only costs me $25 per year.

  16. The following dialogue was captured during a dma meeting (dma – dot mac anonymous)

    “My name is Lenny and I am a dotMac addict. I am addicted to dot mac.”

    “Gidday, Lenny. Tell us about your addiction and how it started.”

    I have been a user since it was first introduced to me and I have not been able to curb my habit for even a day. When I realise that my addiction is about to need renewal, I do what so many of my friends do and draw a line on the glass and use my credit card to create a perfect line for another year. Even with daily use, I find that when I am offered anything new by my dealer, I pull another plastic line. I even now use it with my iPod touche’ and my iPhone.

    I can now use and appease my addiction wherever I go!”

    Thanks for listening.

    By the way, I do not feel 27¢ a day is too much to feed my addiction!”

    “Thank you, Lenny”

    Names have been changed to protect the iDentity of the .mac user.

  17. I just love stories like these. We might as well be swilling Jack Daniels and shooting a 9mm in a darkened room. Without any access to Apple’s books, none of us, including the writer, have a clue about how much revenue and profit Apple makes with .Mac – or not.

    I’m not of the “software wants to be free” camp. Just look at the train wreck from the dot-bomb era to see how that worked. While the freetards and penguinheads keep crowing about free this and free that, ask yourself how profitable they are.

    I thought so.

    Look, I agree I’d like to see .Mac cost less. But I get a ton of value from it. It’s handy, if not a bit slow, but incredibly easy to use. I know of no similar service on the PC side with the array of useful conveniences. (Okay, I’ll wait for some smartypants frigtard to respond to this email with the standard, “well if you use this, this and this group of free services, you can do the same thing!” BS. Well, Mr. smartypants frigtard, did it ever occur to you that these are all scattered on a bunch of unrelated, hard-to-use sites? And these twits keep multiplying…)

    We’ll see. One thing I’ve learned is never to second guess THE Steve. Just when you think you’ve outsmarted him, it usually means that something you’ve thought about is in late beta.

    And ask yourself: if the hack who wrote the story referenced above is so friggin’ smart, why doesn’t he run a company?

    I thought so.

  18. IF the rumored .MAC upgrades show up at WWDC08, THEN .MAC will be really something. I’m referencing the rumored push email service / calendar syncing, contact / to do list, with an iPhone. This service would effectively compete with a Blackberry server environment.

    Without an iPhone, I am not sure the utility is there, particularly for the most technical user.

  19. $100 is way too much, I have always felt that way about .Mac. I don’t think I would use some of the tools that .Mac provides like Back to My Mac. Although, I would probably use some of the iWeb and iPhoto integration tools.

    I’d pay $50. I pay $120 for my personal website, that provides 5x the storage, many times the monthly bandwidth, databases, nearly unlimited e-mail accounts (at least for my purposes), and a slew of other web development tools.

    Just on that comparison .Mac costs too much. .Mac should be more of a loss leader to get people to purchase some Apple products, and to pay for upgrades, which are otherwise meager feature wise. For instance, the last iLife upgrade wasn’t very significant, and some actually thought a retro-grade in terms of iMovie. Most of the changes were with .Mac integration. Yawn.

  20. Other then myself who remembers the Free .Mac days.
    It was basically a crap hole with little point. The Free email with the cool @mac.com address was the only reason to use it. Apple upset many, many Mac users when they started charging for .mac but, in charging for it they’ve been able to expand and improve the features and increase the reliability. While many and yes most may think Apple is charging too much for .Mac I’d argue that Apple isn’t charging enough for what services and features they are offering.
    It’s really about perceived value. I’d guess that most people that try it don’t find the value because they don’t really look at everything that .Mac offers. Apple is working it add education of .Mac to experience but most users will never take the time to get educated on how to use .Mac and all of it’s features.

  21. .Mac…. Great service, great integration, easy enough for my 5 year old to upload photos too. Would I like to see it a few bucks cheaper, sure…. the yearly price difference between what people are bitching about and what they want to pay is less then a latte a month. So common guys, stop the latte, and drink the cool-aid. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    The Dude abides.

  22. It may seem a bit steep, but think about what you are getting. 10GB space. Full email capability. Web gallery for iPhoto and iMovie. Sync capabilities with iCal, Address Book, Mail, etc. Back to My Mac. Also, some of this is going into development, and from what was mentioned a week or so ago, .Mac is undergoing a full upgrade that should make it a lot better than it already is. I think cutting the price a bit (let’s say to $69) would be a good move to entice more users, but still at $99 I think it’s a good value.

  23. Price has always been the thing that keeps me from subscribing to .Mac. I would love to use it, but I can’t justify the annuall fee for a 10GB internet HDD and some (intriguing) bells and whistles. Even the suggested $49 in the article would likely sway me to subscribe, $29 even more so.

  24. How about they work on making it work properly and offering real support for that money.

    It is ridiculous that they have no phone support yet charge $99 a year. And the shit breaks all the fucking time. And back to my mac used to work all the time… and now does not. WTF?

  25. There were no “Free .Mac days” … it was free iTools. And I remember them. That’s when I joined. Then the first year was $49(?) before it jumped to $99(!). I’ve made good use of the service – me using the e-mail and my wife using the storage (backups) – and feeling grateful for each freebie thrown our way. Well … many of them. The latest – $30 off iLife’08 – was rather late and rather modest, but … Anyway! I was thinking about cutting the chain a year or so ago – then they boosted the storage and added other toys. They have about another year before I get back to that point. Less money and/or more service.
    They are charging almost half what I pay to play WoW! How unreasonable is THAT?!?!?

  26. Honestly, if I didn’t rely on my .Mac email account, I would ditch the service in a minute, For me personally, synching has never worked correctly. Never, not even once. I’m also not thrilled that Apple provides no telephone tech support at all for .Mac problems. Email and chat are the only options, and the responses I have received in the past did not inspire confidence in the technical expertise of the .Mac support staff. .Mac really could be a key component of the overall Mac experience. As it is, it has always been, and continues to be, a neglected step-child that is definitely not worth $100 a year.

  27. Look for educators it’s a little less.
    If they could add a domain protection for that price – better.
    Using iWeb to make my school website – priceless!
    If you haven’t used this service with .mac – your missing out!
    If your just buying .Mac for email only- might as well go somewhere else.
    Offer this for free?- You can’t be serious!

  28. That was it “iTools” with the .Mac email address, iDisk of some less the really usable amount and it seems their was another service or two that was part of it.
    I only remembered the .mac email address and that it was free.

  29. .Mac is worth the money if you use all the features. I keep it primarily for a second email address, the Syncing and now for Back to My Mac. I keep telling myself that sometime I will use the other features, but… you know. I think his Steveness could have called .Mac a “hobby” up until now. But I agree with those that predict we are about to see .Mac go on steroids to become a must-have cloud port for all our computing. So, I think we will soon see either a more robust .Mac at the same price, or a reduction in price if Apple keeps .Mac unchanged. It is obvious that Apple would see a far greater adoption if the price was lower. What is often left out of the disussion is that “free” services come with advertising of some sort. It’s a trade-off.

  30. I just don’t get this idea that “I want to do business with you as long as I don’t have to pay you.” For me the .Mac service is so useful, I have no problem paying $99/year. I’d be willing to pay more if Apple would offer AppleCare phone support for .Mac.

  31. I’m as big an Apple fan as most, and I do think there is a lot of value in the .Mac services. Still, I think they REALLY need to deliver on quality of service. I have odd SMTP errors from time to time. Last week, I could hardly send email for about a day, then all of a sudden it started working again. The iDisk has always been slow and clunky (I wish they could build in some sort of local/remote directory synching so directories would display faster.)

    Other than the some of the QoS issues, it’s an excellent product and value. Of course a lower price would be great. I’d like to buy a MacBook Pro for $999, too.

    SC

  32. I’ve used .Mac for a few years and it works for me. Would like the price to drop, but I’ll pay the $8/month for a while longer.

    What I’m looking for now is to have Steve J deliver some major enhancements. With the iPhone/touch gaining sales it’s a no brainer to tightly integrate them with .Mac and all your Macs.

    If there is a price cut then I would see $49 as the lowest they would go – with maybe a free year with the purchase of a new Mac or iPhone/touch.

    Mainly though I’m looking for some exciting innovation that sets .Mac apart from the rest of the field.

  33. Apple did the “drug dealer” method. It gave mac.com away for free. The it came in with .Mac, meaning you need a .Mac account to keep your @mac.com email address. It is a lot to pay for an email address, but you do get more stuff with it. Not $99 worth, but I’ll admit that there is an element of vanity involved here, or Apple would not be able to get away with $99.

    Some of us have been Mac fanatics from the beginning and have pride in Apple. Others have come to Apple because Apple has become a status symbol. I never used to see Apple stickers on crs, except a very few. Now you see the white Apple sticker as the ONLY sticker on the back of a Lexus, Audi and new Range Rover. It has become “cool”. That is a component of the $99. i hate that, but it is there.

  34. The price is too much. It is the only thing keeping me away from .mac. I would love to use it otherwise, but I cannot justify $99.00 for this service. I believe $29.99 / yr would be more reasonable. However, would it cause a significant bandwidth problem for Apple?

    I do not think that the service should be free however. Free denotes not having to update, upgrade or maintain a superior service. $29.99 seems just right to me.

    RickW.

  35. I ditched .Mac as soon as I stopped getting it for free when I worked at Apple.

    For some people, like my mom, .Mac would make sense… though I put my mom on my Google Apps w/Custom domains, so that’s a moot point.

    I like spending what? $8 a year for a domain… getting all the Google stuff for free.

    People say that they’re reading my email and targeting ads to me, but I get my mail via IMAP on my iPhone and Mail.app — I’ve never seen an ad yet, or spam for that matter!

  36. Paid full price and was never able to establish a connection that didn’t drop due to the slow service. I could’ve asked for a refund, but that wouldn’t compensate me for the frustration and time wasted trying to get the thing up and running or getting the refund. So I opted to offset the loss by pirating the equivalent value in Apple software. It’s all square now; I no longer use the software.

    $29 for email, basic synch services like bookmarks, 20MB webspace and 100MB storage. Go up from there. I still think some part of the service should be free.

    As for QuickTime Pro, I’d rather donate to freeware authors or open source projects because their efforts serve my needs better. Oh… and a dozen Macs since 1984 tho’ I started earlier with the Apple II.

  37. I really think that .Mac is a great service. I do know though that it is over priced compared to the rest of the market. AOL gives 5GB of online storage for FREE!!!! $29.99 is a reasonable price. Or $49.99 for 100GB of storage. Godaddy.com only charges $6.95 a month for their 150GB online server space.

  38. .mac has been a invaluable service for my studio since I use it to upload files for clients when I am finished with my mixes. Most professionals in the music industry use idisk just for this purpose. You cant email large files with regular email and other file storage services are a pain for both parties.
    I don’t think .mac is too expensive if you consider hosting a website, idisk, Back to my mac, ical syncing, iphoto sharing, email etc..

    All that is worth the price of admission.

  39. Also, for people that are complaining about upload speed, have you checked you upload rate from your internet provider? I think there is your answer. Most ISP’s upload is pathetic and what most people look at is download speed.

  40. I agree with others I would return if it is made cheaper than of present, 40 dollars would be my thought , definitely not more than 50 . My reasoning of a little more than some of the others is I would not want a very noticeable slow down of service

  41. I had .mac for a couple years. But I wasn’t using all the features, so I didn’t think it was worth $99 to renew. At $49 it would be an easier pill to swallow. Perhaps someday they’ll want to double the .mac user base and drop the price. One can only hope.

  42. I payed $99.99 for it a while back. But now I can’t even remember why. Never use it – way overpriced. If it doesn’t do something awesome with the new iPhone or price is slashed in half I’ll let it go.

    Wait a minute – I just opened up another firefox tab and went to dotmac to refresh my memory. Not much there. I think I signed up for storage space. But 10GB is lame and I always have a little pop-up window telling me every morning that sync is not working. Everything I have is Mac – but this has to improve.

  43. I use .Mac for the synching among my Macs. It’s proven invaluable to be able to update my calendar on one Mac and have it appear automatically on my other Macs when I visit them. Same with Address Book. And iDisk is a great way for sharing important stuff automatically among my Macs, as well. Very convenient.

  44. It has always been overpriced and under-featured, and needs to be fixed, but the plus is that it works almost seamlessly with the OS – and all the alternatives don’t quite do that. And iDisk is too slow to use outside of the US (eg here in Australia).

  45. I’ve been using Dot Mac since it was iTools, and I’ve been grumbling about the promise that I would have it “free for life” ever since.

    However, I’ve renewed via Amazon/eBay each year for $79. I use the service, so for me, there is a value.

    It the rumors are true, it’s about to get a bit more valuable to those of us with iPhones, so I’m sure that I’ll continue to renew each year. I’ll still grumble as I do it, but not because I don’t see the value–Simply because I’m still bitter about the whole “free for life” bit.

  46. the only feature that keeps me from canceling is the ability to sync my macbook pro and my mac pro. I use them both daily and it helps having the same information on both computers with out having to do anything! I can get e-mail from other services and I already have my own web site with 120GB web hosting.

  47. Foris Wrote:

    It has always been overpriced and under-featured, and needs to be fixed, but the plus is that it works almost seamlessly with the OS – and all the alternatives don’t quite do that. And iDisk is too slow to use outside of the US (eg here in Australia)

    x1

  48. i think the price is related to apple’s corporate culture. they don’t use loss leaders to subsidize other sales like hardware. at least it has to break even (like itunes). though i think it would be a good idea to do so. first year free and 29,95 a year thereafter would be a huge additional incentive for a lot of windows-sufferers to buy a mac instead.

  49. Personally, I resent how iWeb has its synchronization feature artificially “crippleware” restricted to just websites hosted on .MAC.

    Yes, I said ‘crippleware’.

    Apple’s .MAC is a horrible value at $99, as at 10GB, it offers inadequate storage capacity to provide true remote site backup to my data — even though my iPhoto library is still far short of the 25,000 image limit of iPhoto ’05, its already at 59.6GB, which means that even a full “Family” .MAC account ($180/year) doesn’t provide enough storage capacity to put it all online.

    Thus, I’m paying $88/year on the Market and getting 1,500 GB of storage. Okay, another $15/year for the domain name (which also applies to .MAC), but that still works out to $0.07/GB (7 cents per GB), whereas Apple’s asking for $9.90/GB … more than two full orders of magnitude (100x) more expensive.

    Granted, some consumers will find ‘value’ in some of the synchronization features, but Apple’s niche is mostly that they’ve made it very easy … not that others don’t offer equivalent capabilities for less.

    Simple bottom line?

    .MAC needs to be a reasonably *competitive* value for the consumer. This means that the price needs to be fairly close and that other features … such as data synching … are the value-added gravy that then sells the Mac OS platform. To this end, here’s a starting point:

    $29/year = worth it only if storage capacity is 100GB (10x current).

    $49/year = comes with at least 1TB of storage (100x current).

    -hh

  50. Wells Fargo is offering a secure online digital space to store documents, etc., with 3GB for ‘only’ $9.95 per month. You can double that to 6GB for only another $60/year

    .Mac looks like a bargain in comparison.

  51. I was turned off at the onset by the $99./yr. fee. After the trial (which I really used very little), I didn’t renew – but a lot of sites present you with a .Mac email screen which I think shouldn’t be assumed especially when you don’t have a .Mac account.

    I would consider a yearly fee of perhaps $29.95 – no more!

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