Architosh Staff ([email protected])

10 Jan 2002

 

Apple: Faster Power Macs coming for Tokyo or before!

Like many of you we were both disappointed but not surprised that Apple did not introduce faster Power Mac pro gear at the keynote this Monday. In hindsight it all makes sense.

With a second MacWorld Expo in Tokyo in less than two months leaving the new Power Macs for that release date makes perfect sense. Why? Because the new Power Macs are a huge deal and so was the new iMac. It was very clear in the way in which it was presented that nothing could possibly steal the limelight from the new iMac.

A Matter of Timing

All of this is a matter of timing. As we mentioned in our very first speculation report on the G5, the normal box testing cycle is six months, yet we knew that some testers only had their boxes for about four. We then speculated that the iMac may be the only big deal at the keynote. Waiting affords Apple and Motorola more time to produce volume chips in quantities adequate for dual processors across the entire range (duals: especially if we are talking G4-Apollo machines).

A Matter of Price

We also now figure it is a matter of price and economic pressure for Apple to deliver these new pro towers very soon. Yes, Apple must deliver new Power Macs by Tokyo, if only for the reason that the current towers are not as attractively priced compared to the new iMacs. Take a look:

Aside from the obvious expansion capabilities of the Power Mac towers, there are very few advantages over the new iMacs, which item per item equal or outclass the Pro tower lineup for the dollar you spend. The comparison above shows that you can essentially get today what would cost you more than $3,000 in a similar tower when you add in the 15inch Apple LCD display. And even then that LCD is outclassed by the much more ergonomic one on the new iMac.

In short, the new iMacs are a superb deal over the Power Mac lineup.

Cannibalization of Pro Line Up

Based on this information Apple can only go so long before the new iMacs seriously cannibalize the Power Mac line's sales and fatter margins. Even worse, the folks waiting for new towers may feel that the new iMac is more than adequate and down right desirable. All of this adds up to poorer sales of the Power Macs.

Apple would only do this if killer Power Macs were in the pipeline for release very soon, which will offset the poor sales of Pro gear for the months of January and March. Apple may be willing to make this sacrifice however in order to deliver the sales results it hopes to accomplish with the new iMac.

For this quarter they seem not to be concerned about the financials too much. If they were they wouldn't let the Power Macs be cannibalized nor would they offer only one model of the new iMac for the month of January. We suspect the decision on which model to produce first was simply based on revenue projections. Clearly the iPod is helping the financials as well.

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