Thursday, July 23, 2009

Does this ad make you want to buy a PC?

7/23/09

Perhaps you have noticed that Microsoft has been running a series of commercials with the key message that PCs are a better value than Macs.

Here’s the URL for one on YouTube: http://www.youtube.com/watch?v=EqvRi2akZMA

We’ve already discussed the fact that many companies have switched to a value strategy because of the economy, and this is yet another example. So what do you think? Is it compelling? If you were considering buying a Mac would this change your perspective?

Apparently the folks at Apple are concerned; so much so that they contacted Microsoft to ask that they stop running the ads because Apple has lowered their prices. (Parekh, 2009)

And according to yesterday’s Wall Street Journal, revenue on the Mac business fell 8% last quarter due to price cutting. Kane, 2009)


Parekh, R. (2009, July 16). Microsoft Undeterred by Alleged Legal Threat From Apple. adage.com. Retrived, July 22, 2009 from
http://adage.com/article?article_id=137989

Kane, Y. (2009, July 22, 2009). Apple Net Up 15% on iPhone Surge. Wall Street Journal, p.B1.

3 comments:

  1. This is a tough one for me. Working with music and design, I've encountered a lot of problems with PC's. However, most of my experience is on PC. I love the idea of Apple making workhorse computers for music and graphics almost to the point of becoming the industry standard, but, man oh man, the price!!!!! I think it's good for PC's to have a strong competitor, but in order to remain a true competitor I think Apple will have to drop the price even more. I read the WSJ article about Apple's losses. I think the Iphone will be their bread and butter for a while regardless, but that maybe their losses on revenue with the Mac have more to do with the slumping economy than reducing their prices. A lot more people have $500 than $2000.

    ReplyDelete
  2. This is a tough one for me. Working with music and design, I've encountered a lot of problems with PC's. However, most of my experience is on PC. I love the idea of Apple making workhorse computers for music and graphics almost to the point of becoming the industry standard, but, man oh man, the price!!!!! I think it's good for PC's to have a strong competitor, but in order to remain a true competitor I think Apple will have to drop the price even more. I read the WSJ article about Apple's losses. I think the Iphone will be their bread and butter for a while regardless, but that maybe their losses on revenue with the Mac have more to do with the slumping economy than reducing their prices. A lot more people have $500 than $2000.

    ReplyDelete
  3. This is a tough one for me. Working with music and design, I've encountered a lot of problems with PC's. However, most of my experience is on PC. I love the idea of Apple making workhorse computers for music and graphics almost to the point of becoming the industry standard, but, man oh man, the price!!!!! I think it's good for PC's to have a strong competitor, but in order to remain a true competitor I think Apple will have to drop the price even more. I read the WSJ article about Apple's losses. I think the Iphone will be their bread and butter for a while regardless, but that maybe their losses on revenue with the Mac have more to do with the slumping economy than reducing their prices. A lot more people have $500 than $2000.

    ReplyDelete