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January 13, 2005

Pundits on parade

National Post's Paul Kedrosky, saying Apple has just refuted its "BMW pricing strategy":

"Where, in other words, is the BMW strategy? It is as if BMW suddenly tried to undercut Honda's Accord or Toyota's Camry. While there's no denying there is a large market for value-priced cars, by competing directly against those products BMW would be putting its margins at risk. More importantly, it would be ample reason for investors to wonder whether BMW executives had lost their minds. Why would they suddenly abandon what they did best -- engineering interesting products -- and start trying to sell family econo-boxes?"

Perhaps BMW could create (or purchase) a second brand that sold cars that were not quite so expensive. Maybe comparable in price to other cars, but maybe a little smaller, and fun. Maybe they wouldn't use quite the same high-performance motor, tires, and other parts, so they could maintain reasonable margins even at a lower price, while providing a stair-step into the BMW family of brands.

Maybe they would be highly customizable, with users adding options that reflect their own needs and desires, building their car to order and tracking it all the way to delivery through the web.

But what could BMW possibly call such a company?

January 13, 2005 in Apple - Mac mini | Permalink


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» On Apple, BMW, and Minis from Geoff Arnold
Like many Mac users, I've dismissed talk of Apple's miniscule share of the personal computer market by (a) pointing out that many of those PCs are just glorified 3270s/VT100s/Wang word processors/cash registers, and (b) invoking the "BMW argument": wha... [Read More]

Tracked on Jan 19, 2005 2:23:59 PM



Posted by: alecm at Jan 21, 2005 10:00:46 AM

LOL! Great observation: BMW Mini, Mac mini!

Posted by: john m at Jan 27, 2005 12:58:17 PM

Good point. I've got a Mini and though I don't go around claiming to own a BMW I actually do. I think Apple's way works because there is always the higher end models to go for.

Sure iBooks are pretty cheap but it's the Powerbooks that have the bling factor that the Post was really talking about. That cache of owning a mac.

And Apple has been doing this for years. Sure the first iMac was higher priced than the cheapest PC, but it was was cheap for what you got (a computer, monitor, programs etc). I don't think the Mini is going to devalue the Apple brand any more than the iPod mini has hurt the iPod brand.

Posted by: Jeffery Simpson at Apr 23, 2005 6:56:39 PM