The new iMac’s price-drop
Apple had claimed that they dropped about $200 off the price of the iMac, but that’s only really a half-truth.
Take a look at this example. Obviously, the left side is the previous model, built one day before the new model was made available. On the right is an equally spec’d iMac of the newest generation.
What a difference a day makes. That’s hardly a “$200” difference. That is actually a $699 difference.
I see what they meant by lower-margin product transition.
Of course there is validity to the $200 number, which is much more relative to the product line than it is to the actual specs. Apple is just being modest, which is always appreciated.
Sidenote: Thankfully i was able to wait until this news before i made my iMac purchase.
That same system costs GBP1438 ($2928) from the UK store. Yay us.
Owain - August 8th, 2007 at 1:22 pm
The cheapest UK iMac went from £680 to £800. So the iMac, previously $1199 for you, was the equivalent of $1380 for us. Now, in addition to the already large difference, it’s gone up to $1620. 15% to 35% difference. ffs.
The configuration here for $2218 (which I appears to be the 24″ from the price) is £1438 from the UK store, or $2915. I don’t know the UK price for a similarly specced old iMac, but for the new models we pay 31% more.
Whilst I can accept a disparity with anglo-american pricing in general, I can’t understand how Apple can justify taking the base iMac above £700, or even £680.
Please if anyone can slap me with a cluestick, do, I just think can’t see it if there’s sense to be found.
Mark - August 8th, 2007 at 1:48 pm
I placed an order for a 24″ iMac on Saturday – against the advice of my apple geek friend, Tom Bridge.
Since my order was still being processed on Tuesday, Apple decided to do the right thing and transition my order to the new 24″ iMac, all-the-while keeping my priority in line for shipping. I was very impressed. The price drop was so drastic, I upgraded to the 2.8 GHz chip. Decided to “downgrade” to the wired keyboard however. Not diggin’ the new wireless option.
All in all, I’m pretty happy.
Jason - August 8th, 2007 at 1:50 pm
I agree a nearly $700 price drop is impressive on what was the high end of the iMac range.
What disappointed me was the lack of a graphics card upgrade option on the new top of the line iMacs.
The GeForce 7600 GT was the upgrade option, and noticeably better than the standard card, for the earlier generation.
The Radeon 2600 Pro is by all tests I’ve seen pretty unimpressive compared to the current generation of video cards, and there is *no* upgrade option if you want better.
Bill G - August 8th, 2007 at 1:57 pm
Actually I think the lower margin transition is going to be a flash-based video ipod. And I think some of the transition issues are just going to be more time/channel/supply transitions as much as margin transitions.
But this comparison was really nice and appreciated.
On a personal level, these iMacs evoke lust in me in a way their while plastic predecessors did not. Envy because I’m pretty committed to a notebook only lifestyle.
Nice design refresh: priceless. =)
yet another steve - August 8th, 2007 at 2:37 pm
There is an import subsidy applied. It’s added to protect the UK’s local iMac growers from cheap overseas imports. Mr Ives had offered to pay the difference, but he got crushed by a huge “Designed in California” stamp.
(What are the chances the new iMac are small enough to hide in my shoe when I return from a trip to NY later this year?)
dougless - August 8th, 2007 at 4:06 pm
Price drop my ass. Not for those of us outside the US. You do know that there are other places in the world than “USA.. USA… USA…” and “eyraq” right?
RobM - August 8th, 2007 at 4:13 pm
RobM: You’re saying that outside of the US and “eyraq” – the new generation iMac is available for the exact same price as the old gen when specced the same?
I find that hard to believe.
Sure, there is a UK tax involved, which makes the UK iMac more expensive than the US iMac, but i’m talking about the change in price from generation to generation.
jeff - August 8th, 2007 at 4:25 pm
Mark, I agree that dropping the lowest price iMac is dumb, the Mini is overpriced for what it is, there’s a bit of a gaping hole between the cheapest iMac and the Mini. But what you’re (all) forgetting is VAT, it makes a bigger difference than you think… eg. the top end iMac ex.VAT is £1,241 vs $2,299 which translates to an exchange rate of £1=$1.85, which is about a 9% premium, NOT 30%. The worst value is the cheapest iMac which is selling at a 14% premium. They should sell it for £749 to get the price in line.
BTW the equivalent new iMac IS 15% cheaper than the old model, even in the UK…
Steve - August 8th, 2007 at 5:13 pm
RobM: “You do know that there are other places in the world than ‘USA.. USA… USA…’ and ‘eyraq’ right?”
How about moderating out stuff like this and keeping to the point (and the fact that the price is higher overseas is certainly within the point).
Stephen - August 8th, 2007 at 8:53 pm
Don’t forget that in the UK
Francis M - August 8th, 2007 at 9:41 pm
[…] The new iMac is actually about $700 cheaper than it used to be. Interesting. (tags: cool interesting apple) […]
links for 2007-08-09 | Musings of a Chicagoan - August 8th, 2007 at 11:22 pm
The $3k before price was ludicrous. I can’t imagine Apple sold one at that price. This isn’t a Mac Pro, it’s an iMac.
Scott - August 9th, 2007 at 9:41 am
Placed my order for a 2.8GHz model. Ships Aug 13.
Neil Anderson - August 10th, 2007 at 12:01 am
Of course products produced in the US are more expensive in the UK. It’s called a weak dollar. Look into it. If you don’t like it, feel free to start your own computer company.
brett - August 10th, 2007 at 12:51 pm