Tuesday, October 14, 2008

Marginal revenue maximization

Remember the Pro/Consumer Portable/Desktop 2x2 product matrix Steve Jobs introduced a decade ago to simplify Apple's confusing product offerings? It has completely fallen apart. Let's examine what you can buy today:

Portables:

MacBook (Plastic): $999, entry level
MacBook (Metal): $1300, entry level + style
MacBook (Metal): $1600, entry level + style + CPU boost + disk
MacBook Air: $1800, light weight
MacBook Air SSD: $2500, light weight + high tech + less slow CPU
MacBook Pro 15": $2000, power user + Firewire
MacBook Pro 15": $2500: power user + Firewire + RAM + disk + minor CPU boost
MacBook Pro 17": $2700: power user + Firewire + big display (- slower GPU!)


Apple has hit the entire gamut of possible price points between $1000 and $2000, in roughly $200-300 increments. I think the goal here is not simplicity like in 1999, but maximizing revenue from each potential buyer.

Desktops:

Desktops have a similar distribution of prices, but there is less functional overlap across families:

Mac Mini: $600, entry level, BYOKDM
Mac Mini (fat): $800, entry level + disk + CPU + SuperDrive, BYOKDM
iMac 20": $1200, entry level complete system
iMac 20" (fat): $1500, entry level complete system + CPU + RAM + disk
iMac 24": $1800, deluxe complete system
iMac 24": $2100, deluxe complete system + CPU + disk + GPU
Mac Pro (CTO stripped): $2300, expandable base
Mac Pro: (standard): $2800, power user standard 8 core

Once again, they're hitting a bunch of price points, from $600 to $2800 at fairly even $200-300 increments.

Interesting.

No comments: