How Expensive Is Apple, Really?

Posted November 13, 2009

There's always been a back and forth debate as to whether Apple really is over-priced or not. I thought I'd actively test this, and submit my findings. Please note that this is a simple comparison, and I don't go into things like consumer experience per se.

Also note that according to Apple, Mac OS X and all the software that comes with a Mac is intended only as a means of selling hardware. Apple does not consider these separate products (hence the whole legal action with Psystar, and Apple's contention that it is not "product tying" since Mac OS X isn't a "market" by itself). Given this, I have ignored the perceived value of all software which comes with a Mac. A PC can be configured for free, anyway (using Linux, and a whole plethora of open source software), so software is a moot point for this comparison.

I used an iMac for comparison purposes, since this would generally be the product for the "average" user, but decided on a high-end model, and then tried to assemble similar components (or better) using a wholesale supplier (which is open to anyone with a credit card) and see where we're left.

I chose the iMac Quad-core with the 27-inch monitor in it's standard configuration, which is $2099 on the Apple Canada store.

The following are the components I assembled from my wholesaler:

Component Price
Cooler Master EATX full tower $171.35
Corsair 850W power supply $172.70
LG Blu-ray Writer $245.16
28-inch LCD $350.68
nVidia E-Geforce GTX 285 1GB 2.5GHz $381.15
3TB (RAID0) $239.76
8GB DDR3 RAM $198.56
Asus ATX motherboard 4xPCIe $194.40
AMD Phenom II 3.4GHz $209.09
Logitech wireless keyboard + mouse $81.12

Total Price: $2243.97

The prices are close - but take note of a few things here. The PC has 3 times the hard drive space (in RAID0 configuration, so slight performance gain), twice the RAM, the graphics card is vastly superior to the iMac, we have a Blu-ray writer, a larger LCD, a motherboard which supports a huge amount of expansion, and even a significantly faster CPU (by nearly a full GHz). Add to this that most of the components I've used are the more expensive options. And remember that this isn't a bulk purchase, which means no additional discounts have been applied - something Apple would obviously get.

If we try to be more precise with the specs by lower the hard drive space to 1TB (but keeping it in RAID0 for the performance gain), lowering the RAM to 4GB, lower the graphics card to a GTX 260 with 893MB, and using a slower CPU (3GHz - still faster than the iMac), the price drops down to 1,800.44 - $290 cheaper than the iMac, and we still have a better LCD, video card, and Blu-ray writer. For $290 dollars per PC, I'd gladly support users with kick-ass service.

Apple is clearly overpriced. No question at all. The numbers are complete proof. The only thing you gain is a smaller form factor (which inhibits upgrading anyway, so it's not a boon), and maybe a "cooler"-looking operating system (but that's open to opinion).

Sorry to all you Apple fans - your hardware is overpriced rubbish.

Comments

you are so biased - but right
Heh heh heh

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