Netbook Digest

news + analysis on the netbook megatrend

Apple Netbook at $599 Price Point Would Work

February 24th, 2009 · 2 Comments · Uncategorized

applenSteve Jobs infamously said that “”We don’t know how to make a $500 computer that’s not a piece of junk.” Despite the skyrocketing sales of netbooks, investors have been supportive because of fears of cannibalization of the company’s high-priced products. There is still no Apple Netbook (although you can DIY).

Brian Marshall, a Broadpoint Amtech analyst, claims that a $599 price point would work for Apple. It would have a 50% premium if it had similar specs to an HP Mini 1000 ($399 for 10.1 in display, 16GB hard drive).

With a cost-of-goods calculation, Marshall indicated how a $599 netbook could still make a profit of 35-40%, which is comparable to the 35% margin Apple had in Q4 2008.

He also pointed out that the company could be a unique position to implement their technologies, such as a multi-touch screen and iLife. The company would also find it hard to keep gaining marketshare with high-priced products in a recession.

Source: PCWorld

Tags:

2 Comments so far ↓

Leave a Comment