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Apple's stance on product cannibalisation.. not what you might think..


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#1 Smoke_Tetsu

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Posted 30 May 2014 - 03:35 AM

Remember how we had debates as to whether there'd ever be an xMac and arguments where put forth that Apple would never do it for fear of cannibalizing other Macs? Well... From a Macworld article from last year.

Tim Cook said:

In terms of cannibalization and how we think about this: I see cannibalization as a huge opportunity for us. One, our base philosophy is to never fear cannibalization. If we do, somebody else will just cannibalize it, and so we never fear it. We know that iPhone has cannibalized some iPod business, it doesn’t worry us that it’s done that; we know that iPad will cannibalize some Macs—it doesn’t worry us.
On iPad in particular, we have the mother of all opportunities here, because the Windows market is much, much larger than the Mac market is. And I think it is clear that it’s already cannibalizing some, and I think there’s a tremendous amount of more opportunity there and as you know I’ve said for two or three years now that I believe the tablet market will be larger than the PC market at some point and I still believe that. And you can see by the growth in tablets and the pressure on PCs that those lines are beginning to converge.
I think the other thing for us—maybe not for others but for us—is that if somebody buys an iPad mini or an iPad, and it’s their first Apple product, we have great experience through the years of knowing that when somebody buys their first Apple product, that a percentage of these people wind up buying another type of Apple product. If you remember what we had termed the “halo effect”, for some time with the iPod with the Mac, we’re very confident that that will happen and we’re seeing some evidence of that on the iPad as well.
And so I see cannibalization as a huge opportunity.

Perhaps Apple was more concerned about this under Steve Jobs watch? :) There's probably still not an xMac coming down the pike anytime soon though. :P
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#2 ozzy

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Posted 30 May 2014 - 12:59 PM

There were quotes about this from Jobs back when the iPhone came out back in 2007-08.  He basically said someone was going to "cannabilize" the iPod, so better that it was them with the iPhone.  I'm not sure this has been a concern for years

#3 Sneaky Snake

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Posted 30 May 2014 - 03:01 PM

Apple avoids cannibalization in areas where it wouldn't benefit them much (Having a notebook at every screen size and price point; having desktop at every price point; etc);

Their product lines are very clean, with very little overlap between each other. In that regard they avoid cannibalization. They will never release a mid range tower, since that would cannibalize Mac Pro and iMac sales, while not really bringing many new sales in (The number of people looking for a mid-size Mac tower, who are unwilling to settle with any other Apple computer is probably a minuscule number - although I would by a mid size tower Mac in a heartbeat)

Remember back in the day when Apple sold every computer related product  and accessory (Even photo scanners!) under the sun? That age will never return, and rightfully so.
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#4 macdude22

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Posted 30 May 2014 - 03:10 PM

View PostSneaky Snake, on 30 May 2014 - 03:01 PM, said:

They will never release a mid range tower, since that would cannibalize Mac Pro and iMac sales, while not really bringing many new sales in (The number of people looking for a mid-size Mac tower, who are unwilling to settle with any other Apple computer is probably a minuscule number - although I would by a mid size tower Mac in a heartbeat)

Remember back in the day when Apple sold every computer related product  and accessory (Even photo scanners!) under the sun? That age will never return, and rightfully so.

I harrass my Apple Rep about a Mac Mini Pro every time he shows up, this is legit the argument. The amount of people that were going to buy a Mac that won't buy an iMac just because a mid tower doesn't exist is miniscule. I told him I'd buy one, I'm not the target demographic. Well tom I used to be I used to be. I told him it is fine because Gigabyte makes a drop in replacement for a Mid Tower Mac but he seemed confused and I don't think he got what I was saying. :teehee:

I'd kill for a new 6400 or something along those lines.
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#5 Frost

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Posted 30 May 2014 - 05:17 PM

View Postmacdude22, on 30 May 2014 - 03:10 PM, said:

I harrass my Apple Rep about a Mac Mini Pro every time he shows up, this is legit the argument. The amount of people that were going to buy a Mac that won't buy an iMac just because a mid tower doesn't exist is miniscule. I told him I'd buy one, I'm not the target demographic. Well tom I used to be I used to be. I told him it is fine because Gigabyte makes a drop in replacement for a Mid Tower Mac but he seemed confused and I don't think he got what I was saying. :teehee:

I'd kill for a new 6400 or something along those lines.
Mac mini Pro = 2.6 GHz mini with 16GB of RAM and a 2TB SSD RAID. Only about $2K and it's got some serious oomph if you need disk speed and RAM, but not necessarily CPU/GPU and thus a Xeon is overkill. I actually get a pretty good bit of extra income from building those.
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#6 macdude22

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Posted 30 May 2014 - 07:52 PM

View PostFrost, on 30 May 2014 - 05:17 PM, said:

Mac mini Pro = 2.6 GHz mini with 16GB of RAM and a 2TB SSD RAID. Only about $2K and it's got some serious oomph if you need disk speed and RAM, but not necessarily CPU/GPU and thus a Xeon is overkill. I actually get a pretty good bit of extra income from building those.

I use a 2.6ghz i7 mini with Fusion Drive at work as my daily driver. It works fine for there but I could never use it at home with HD 4000 GFX. In every other respect it tears it up.
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