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Sat, Nov 21, 2009 - 03:27 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Apple’s strategy for avoiding downturn: Think Different
Friday, November 14, 2008 - 08:38 AM EST

"Computer makers are scrambling to adjust to rapidly deteriorating demand for personal computers, cutting prices as they brace for what is quickly shaping up to be a cheerless holiday season," Justin Scheck and Yukari Iwatani Kane report for The Wall Street Journal.

"Dell Inc. and some retailers are even offering discounts of 20% to 30% on new notebook computers, chipping away at profits in a segment that has enjoyed healthy demand," Scheck and Kane report. "Until now, the $263 billion PC sector had shown resilience amid a slowing economy: World-wide PC shipments rose at least 12% in each of the first three quarters of the year. But PC sales have stalled in recent weeks as consumer spending has plunged."

"Research firm IDC is preparing revised numbers that it could release as soon as Friday that project a 1% drop in U.S. PC shipments for the fourth quarter compared with a year earlier," Scheck and Kane report. "The deteriorating PC climate portends poorly for Hewlett-Packard Co., the market leader with 19% global share in PC shipments, and Dell, which has roughly 15% share, according to IDC."

"One exception to the trend may be Apple Inc. The Cupertino, Calif., company chose to pack more features into new aluminum MacBooks it unveiled last month, rather than drastically cut prices. The new aluminum MacBooks start at $1,299 and range upwards of $2,000," Scheck and Kane report.

"The strategy allows Apple to maintain its brand's premium reputation while protecting its industry-high profit margins, which are close to 20%. In its last reported quarter, the company reported double-digit growth in unit and revenue shipments for its Macintosh computers," Scheck and Kane report. "Though analysts say Apple will likely be affected by the economy, they say the company will still see a solid holiday season as consumers snap up the new notebooks."

More in the full article here.

[Thanks to MacDailyNews Reader "Citymark" for the heads up.]

MacDailyNews Take: Think Different:



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Nov 14, 08 - 08:52 am Comment from: Chicken run

Don't know if everyone else (I'm in Europe) are getting the same 'More On This Topic' links at the bottom of this page.
The contextuality of these contextual ads is truly hilarious, and show that even if 'Think Different' strategy would turn out to be a misjudgement, Apple still has options:

How to Use Michael Dell's Philosophies in Running a Business

Dude, You're Getting An 'Iron Man'

What to Spend on a Computer

How to Buy a Dell PC

And most important, related and relevant of all:
How to Ship Day-Old Poultry

Nov 14, 08 - 09:04 am Comment from: MacDailyNews Webmaster

Thank you for bearing with us as we beta test the "Pluck" system (the "More On This Topic" section below).

For now, please consider it comedy.

Thank you.

Nov 14, 08 - 09:09 am Comment from: Connor MacBook

Yet again, Apple are "gonna innovate our way outta this"!

Nov 14, 08 - 09:11 am Comment from: bioness

Is it just me or does Bill Gates fit in that picture?

Sure we all hate him and villify him, but at the end of the day, he helped pirates and spread windows all around the world. And thanks to the shittiness of it, people come to Macs.

Nov 14, 08 - 09:12 am Comment from: JoshtheiMacGuy

Maybe Apple would do better if it got it right.

Think Differently!

Nov 14, 08 - 09:22 am Comment from: Eric

On the other hand, Ballmer's just crazy.

Nov 14, 08 - 09:23 am Comment from: Harvey

This is the story of the three little pigs. Dell built their house of straw, and HP built their house of wood. Then the Big Bad Recession came and blew their houses down. But Apple built their house of bricks and weathered the storm.

The nice part of recessions is that they end. Apple is prepared. When the recession is over, Apple will still be there.

Nov 14, 08 - 09:23 am Comment from: Think Different

This one is even better. This is about a 'real hero' who landed 4 times behind Geman lines in assaults with gliders, and after landing, became foot solders. Only time in history.

http://www.youtube.com/watch?v=40WAdL2HlU8

Nov 14, 08 - 09:25 am Comment from: Harvey

Oh, there is a fourth little pig. Microsoft, who built their house of electrons. When the Big Bad Magnet comes by that pulls all their customers away there will be no house at all.

Nov 14, 08 - 09:32 am Comment from: DH

A huge cash reserve under your pillow lets Apple sleep better at night and during these downturns. They need to just keep innovating and introducing great products. Perhaps consumers will really look at the products they are buying and get real value for their money spent, which will put Dell in a world of hurt.

Nov 14, 08 - 09:42 am Comment from: critic

This just in:

Rob Enderle has just advised his client Michael Dell to go into the day old poultry business.

In a related note, Microsoft will sell you a Premium Home User license for day old poultry for $199.

Nov 14, 08 - 09:45 am Comment from: Morpheus

Apple, please, please run that commercial again for a month or so...that is one of the greatest ads ever, ever, ever. It is moving, still.
It would reinforce the class act and Think Differentness that Apple has always stood for.
We need a class add like that during these times. The only thing you have to change is the logo at the end. Please run it!

Nov 14, 08 - 09:45 am Comment from: Chicken run

@MacDailyNews Webmaster

Comedy or not, be very careful if you mention "Pluck" system beta and day-old poultry on the same page.
PETA is everywhere.

Nov 14, 08 - 09:47 am Comment from: critic

More on-topic, it is important to remember that back in the 2001-2002 recession Apple was the only PC maker that remained consistently profitable while the rest of them lost their a**.

Nov 14, 08 - 09:50 am Comment from: Potty

What if Bill Gates and Warren Buffet together funded people with good mortgage/income ratios who can prove they lost their jobs and have at least one child, but not those who have a 50g income who were dumb enough to finance a 300g house.
We could use a kick start from someone, why not them. A billion less would not hurt either one of them and they would make history books.

Nov 14, 08 - 10:01 am Comment from: The Muffin Man

JoshtheiMacGuy,

unfortunately it's not just U.S. citizens who are ignoring adverbs; although they're the worst.
When you ask a U.S. American how he's doing, he'll usually answer "I'm good" instead of (the correct) "I'm well".
"I'm good" sounds like self-praise to me, because that's what you might answer if you'd been asked:
What sort of person are you?

When I read 'Think Different!' all those years ago, I always used to add in my mind (like Eliza Doolittle):

"But speak proper"!

Nov 14, 08 - 10:15 am Comment from: qka

I'm not seeing the "More on this topic".

Is my blocking system that good?

Nov 14, 08 - 10:22 am Comment from: Websters

JoshtheiMacGuy,

Not to belittle you in any way but you are incorrect.

Nov 14, 08 - 10:26 am Comment from: critic

@josh and Muffin Man

The usage is not incorrect, based on the intent of the statement.

The syntax of this slogan is acceptable; "different" is not meant to modify "think," but rather is the object of "think" being used as a transitive verb here. They are not urging you to think differently from others, they are urging you to think about that which is different.

Nov 14, 08 - 10:37 am Comment from: google news link

http://online.wsj.com/article/SB122662495216826913.html?mod=googlenews_wsj

mdn magic word freedom, as in freedom to link.

Nov 14, 08 - 10:45 am Comment from: rdbvideo

Yeah, I read that in the WSJ this morning. As soon as I read "chose to pack more features into new aluminum MacBooks", I thought, sure they did. They packed more in by eliminating firewire ports and the matte screen option.

That's going to boost sales, isn't it? hmmm

Well, actually it did. I rushed out last night to buy one of the last MacBook Pros (with matte screen), on sale at Micro Center.

Coincidentally, a young family was buying an older model MacBook at the same time... One that would work with their firewire camcorder.

I should be set for a while... hopefully until someone wakes up in Cupertino and brings back choice.

(and please, no Uber-fanboys getting rude over my preferences)

Nov 14, 08 - 11:03 am Comment from: think different ad won't be shown again

The Think Different ad spoke to a very specific type of person, the devoted Mac user, at a time when the Mac was an afterthought in the computing industry and Apple was struggling for survival. The commercial reassured that group that the Mac wasn't going anywhere.

The ad did its job back then for its specific target but it's not necessary now as Apple's in a different position. I know the Think Different ad pissed off a lot of people who thought it was elitist and co opting the good image of a lot of great people. It did make some people think Mac users were full of themselves.

Today, Apple is catering to the upper part of the mass market and the Think Different ad is a bit too 'out there' for regular folks who just want an iPod or a new computer.

Nov 14, 08 - 12:30 pm Comment from: The Great Microsoft Shiller Massacre

America is broke and has been borrowing tons of money from other countries to give itself the illusion that it is rich. Meanwhile, the people have been pissing away all the money that they have been able to weasel out of the banks on dumbshit, feel-good things like BFTs (built for towing, big fucking trucks), SUVs, trips to Disneyland, and liberal-arts college degrees.

When Americans went to the moon to play golf, they owned the world. Now the world owns them.

You can thank your war-mongering, fear and loathing Neocon republicans for this.

Nov 14, 08 - 01:07 pm Comment from: Fewer Features

@ rdbvideo:

Ex-fscking-actly! I'm right with ya, bro!

Nov 14, 08 - 04:53 pm Comment from: opie

Somebody please call a whaaahbulance for the tit-babies crying over their firewire loss. If it is that much of a loss for you, go use a windoze pee cee

Nov 14, 08 - 10:08 pm Comment from: Olmecmystic

@Connor MacBook:

I clearly remember Steve saying exactly that but I've NEVER been able to find that quote, not on Youtube or anything!

He was talking about the tech bubble at the beginning of the decade that brought everybody back down to earth, put Apple on a level playing field with them, and eliminated the charlatans.

Hook me up with a link to that quote if you have it, either in print or on video. Thanks!

Peace.
Olmecmystic cool smile

Nov 16, 08 - 08:31 am Comment from: Another Pig Story

"This is the story of the three little pigs. Dell built their house of straw, and HP built their house of wood. Then the Big Bad Recession came and blew their houses down. But Apple built their house of bricks and weathered the storm."

The Three little pigs had three stores. During the depression the Dell pig sold bread, the HP pig sold bread and the Apple pig sold fancy loaves of luxury bread which were no more nutritious than Dell bread but sure looked nicer. Some people even claimed they tasted better too, but that might have just been the fact that they paid so much money for the bread that they needed to think that.

As the recession stuck, the people had less money but were still hungry. They stopped buying the pretty Apple bread they loved so much and ate Dell and HP bread for the next few years, looking forward to the day they would be able to afford to buy Apple bread again.

There's a reason why Wal-Mart is the one retailer that's doing well right now, and it shouldn't be a surprise that in recessions the expensively priced goods are the first thing to get cut by people, not the last. This is especially true when an equally effective budget priced alternative exists.

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