Dekatophil
Registered
Apple - from a european perspective.
"Apple is Apple no matter how you look at it" you might say. Well, it at times seems that this is not the case. Indeed, the Apple has some mouldy patches turned towards Europe.
Why am I writing this? Well, I'm a Mac aficionado and as such would like to see our fruit company selling fresh, spanking produce everywhere.
But, alas, Apple is doing badly, especially in Europe. Why is this so? European bias? Just not their product? No. The reasons pop out very clearly once you consider a few certain points:
Pricing. Apple products are more expensive in Europe than they are in the US.
Consider the following: iBook $999 v 1099 (+10%)
iMac $1199 v 1299 (+ less than 10%)
PMacG4 $1699 v 1899 (+more than 10%)
Xserve $2999 v 3599 (+20%)
With the dollar and the euro in parity there is no technical reason for such a discrepancy. Even shipping and import are comparatively minor expenses. Apple has the largest margins in the industry. At least 20%, often 25 - 30%. A little less wouldn't hurt, if indeed, the margin would be touched at all.
Apple is weaker in Europe than it is in the US. The computer market is extremely price sensitive. And yet, instead of aggressively trying to sell more, Apple puts a 10% - 20% price punishment on its products in Europe. Apple computers cost more than the average PC, and for a reason. But 100 bucks more or less are still very relevant. Every European buyer looks over the Atlanctic and asks: Why?
(Apple likes to compare its products to e.g. Mercerdeses. Well, a Mercedes is noticeably cheaper in the US than it is in e.g. Germany, because the US market is tougher for european products. Some inspiration there, Cupertino?).
Does Apple add extra value? No. Indeed, it introduces Sherlock 3 with great fanfare and lo and behold! No european services. Not a single one. Errr.... hello ? There is a whole world out there, and you want to sell your stuff to it! At Paris, Steve Jobs deigned to announce that "they are working" on Europe specific services. No time, no nothing. Well, thanks Steve! Now with 10.2.2, Sherlock still hasn't improved to that respect. Not even the eBay tool has been extended (while the technology is the same everywhere around the world).
Shops: While Apple is making a big thing about their shops (which are great, I think), we hear nothing about Europe. Now, I understand, it's perfectly natural to start in the US. No shops in Europe. Or maybe yes, some time. Well, Apple don't really talk to us, do they?
Let's be frank, we like discounts and special offers, don't we ? Well, to make a long story short, there are far less of these in Europe than in the US. With new laws passed there is no reason for this to be so. Students' discounts? Don't get me started. Nothing compared to the US.
So, where does all that leave us? Apple is a company that shows little effort outside the US. For a global player this is shocking. Europeans can feel slapped in the face by Apple. Instead of making their products more attractive or at least comparably attractive, they scorn the European market. No wonder sales don't look good over here. How could they?
I for one am not ready to pay more money for less value. Apple need to change their attitude if they don't want to find themselves confined to one country only. Or is that what they want? Well, time to look for alternatives, methinks.
"Apple is Apple no matter how you look at it" you might say. Well, it at times seems that this is not the case. Indeed, the Apple has some mouldy patches turned towards Europe.
Why am I writing this? Well, I'm a Mac aficionado and as such would like to see our fruit company selling fresh, spanking produce everywhere.
But, alas, Apple is doing badly, especially in Europe. Why is this so? European bias? Just not their product? No. The reasons pop out very clearly once you consider a few certain points:
Pricing. Apple products are more expensive in Europe than they are in the US.
Consider the following: iBook $999 v 1099 (+10%)
iMac $1199 v 1299 (+ less than 10%)
PMacG4 $1699 v 1899 (+more than 10%)
Xserve $2999 v 3599 (+20%)
With the dollar and the euro in parity there is no technical reason for such a discrepancy. Even shipping and import are comparatively minor expenses. Apple has the largest margins in the industry. At least 20%, often 25 - 30%. A little less wouldn't hurt, if indeed, the margin would be touched at all.
Apple is weaker in Europe than it is in the US. The computer market is extremely price sensitive. And yet, instead of aggressively trying to sell more, Apple puts a 10% - 20% price punishment on its products in Europe. Apple computers cost more than the average PC, and for a reason. But 100 bucks more or less are still very relevant. Every European buyer looks over the Atlanctic and asks: Why?
(Apple likes to compare its products to e.g. Mercerdeses. Well, a Mercedes is noticeably cheaper in the US than it is in e.g. Germany, because the US market is tougher for european products. Some inspiration there, Cupertino?).
Does Apple add extra value? No. Indeed, it introduces Sherlock 3 with great fanfare and lo and behold! No european services. Not a single one. Errr.... hello ? There is a whole world out there, and you want to sell your stuff to it! At Paris, Steve Jobs deigned to announce that "they are working" on Europe specific services. No time, no nothing. Well, thanks Steve! Now with 10.2.2, Sherlock still hasn't improved to that respect. Not even the eBay tool has been extended (while the technology is the same everywhere around the world).
Shops: While Apple is making a big thing about their shops (which are great, I think), we hear nothing about Europe. Now, I understand, it's perfectly natural to start in the US. No shops in Europe. Or maybe yes, some time. Well, Apple don't really talk to us, do they?
Let's be frank, we like discounts and special offers, don't we ? Well, to make a long story short, there are far less of these in Europe than in the US. With new laws passed there is no reason for this to be so. Students' discounts? Don't get me started. Nothing compared to the US.
So, where does all that leave us? Apple is a company that shows little effort outside the US. For a global player this is shocking. Europeans can feel slapped in the face by Apple. Instead of making their products more attractive or at least comparably attractive, they scorn the European market. No wonder sales don't look good over here. How could they?
I for one am not ready to pay more money for less value. Apple need to change their attitude if they don't want to find themselves confined to one country only. Or is that what they want? Well, time to look for alternatives, methinks.
