Wednesday, July 02, 2008

The cost of cool

Several posts around the web last month have discussed the apparent 'cost differential' between Macs and competitive products, from computers to phones. See here and here for examples.

And while I don't mean to take sides in a debate that is, largely, style over substance, it is interesting to note the premium price differences between a brand like Apple and the prices that can be charged by a branded generic (like Dell).

According to IDC, while the average cost of PCs has dropped from $1,046 in mid-2005 to $963, the average price of a Mac has risen to $1,526 because of new high-end products such as the razor-thin MacBook Air.

So here's a chart I created to show what PCs lack...and what the value of the Apple brand is to shareholders. I suspect your point of view will depend on which side of the Mac-PC debate you've already staked out. Either way, one must be impressed with the ability of Apple to charge the premium.

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