∞ Schiller: Apple designs Macs for the future

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Netbooks have taken off in the last year, leading some industry watchers to wonder if Apple was missing out on an opportunity by not having one. But Apple stuck to its guns and continued to put out high-quality computers, instead of moving into the cheaper market. iMacThe strategy clearly paid off. In reporting its quarterly earnings on Monday, Apple said it sold 3.05 million Macs during the fourth quarter, representing a 17 percent unit increase over the year-ago quarter. That is the most Macs the company has ever sold in a single quarter. Ever.

I spent some time speaking with Phil Schiller, Apple’s senior vice president of Worldwide Product Marketing, on Tuesday about the new iMac, Mac mini and MacBook releases and how that fits into the company’s strategy.

“The iMac and MacBook are brand new designs — they are the most advanced designs,” said Schiller. “You design for the future, not the past. That’s what customers will see in a Mac, a design for the future. A lot of the cheaper computers are designed around the past.”

Designing for the future has as much to do with the technologies used in the computers as it does with the physical design and finishing touches. Apple typically uses high-quality displays, advanced I/O and other options that make the computers useful for years.

Schiller says that price is certainly a determining factor when purchasing a computer, but it’s only one of the factors. People look at screen size, battery life, customer support, and one of the most overlooked aspects of purchasing a new computer, software.

In talking to switchers, Schiller said that Apple learned that people really do want to manage photos, learn how to compose music and make movies. As it happens, Apple offers iLife for free on every computer, allowing users to do all that and more.

Some users are coming from the iPod and iPhone, commenting on how easy iTunes is to use. It is the so-called “halo effect” that is leading to some of the new Mac purchases.

Whatever the reason, people are buying Macs like never before. Apple’s strategy of making quality products, instead of fighting for the low-end market is working for them and there is no sign of that changing.



  • http://www.van-garde.com Daniel Swanson

    Thanks, Jim, for your reporting and for the interview with Schiller.

    So many people are clueless about the real story behind Apple’s success. It’s not just the features, but the overall design, as well as the merchandising, that have caught the attention of so many switchers and Mac users these days.

    It’s very heartening to me to see Apple continue with this strategy. It is obviously paying off.

  • dan Loan

    Nice job Jim

    It’s true… anyone can be cheaper, but what does that get you? Cheap… For all the rhetoric. nobody wants the cheapest food, car, house, doctor, or apparently electronics. Best value is very rarely the cheapest in any category… it’s easy to be cheap, it’s far more difficult to be worth something…

  • John Dingler

    Hi Jim One would think that analysts and commentators who want Apple to sell a $400 Mac want the company to die.

  • jbelkin

    most anlysts are clearly idiots who don;t even know their own industry. Acer’s margins on a $299 netbook – 2% … yet analysts cannot figure out how to calculate 2% on $299 or the bigger question why are only netbooks the only growth on the Pc side and at a SLOWER rate than Macs? Because on the PC side, the WIN experience has so degraded the PC experience people who buy PC’s are only willing to shop on price and minimum features (PC hunters – I want a keyboard, 17″ screen and under $700) … why pay for more because it’s NOT WORTH MORE. Conversely, the mac experience is different – people clearly shop & value more than just price (also as evidence besides the huge growth, the best selling MACS are not the cheapest in each line). Analysts cannot see the difference between the two markets but consumers DO.

  • charli

    the funny part is that some folks don’t see that Apple is also designing the future. they are pushing the envelope on environmental issues. dropping ‘bad’ chemicals, making devices that use less batteries and less electricity (which also brings down your bills on such issues).

    and they are pushing to eliminate optical disks with moves to encourage digital downloads and using SD as part of the move to solid state. there are already companies exploring the use of SD to hold software (you can already boot from them with the Macbooks) and even video. imagine a whole season of a tv show on one little disk. with extras. and way less plastic and clutter than those box sets on your shelf. easier to travel with also. nice thought

  • jr

    I can vouch for SD as storage as my car hi-fi is equipped with an SD slot, and no CD, so no more need for moving disks on the road for me.