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Windows Vista: Meet The New Price, Same As The Old Price
Computers | Aug 31, 06
Even a bit higher, actually. If a pre-order page that appeared on Amazon is to be believed, Vista, the latest version of Windows, is slated to be released January 30 of next year, at price levels at or exceeding those of the current release. So assuming this information is accurate, what does this tell us about Redmond's view of its competitive position?
It's been almost five years since the release of XP, and during that time a lot has happened. The development of Vista has been a tale of pushed-back launch dates, redesigns and struggles with backwards-compatibility. And it's not like the current version of Windows has inspired universal acclaim and appreciation (when was the last time the guy in the cubicle next to you cried out "God, I love Windows!" sans irony?). Meanwhile, an iPod-invigorated Apple offers Intel-based machines capable of running Mac OS, Windows and Linux, while ultra-cheap Linux-loaded laptops are available from the likes of Wal-Mart.
Microsoft's response, as revealed by this pricing, is nothing less than the full, heartfelt yawn of a monopolist. The above so-called competitive threats have put nary a dent in Microsoft's stranglehold on the desktop OS market, and despite oft-blogged doubts regarding Vista (the Aero interface is said to consume processor power with gusto), Redmond seems convinced the world will simply swallow its latest offering with all the docility of grazing sheep. Given consumer behavior up to the present, it's not like Redmond's assumption lacks foundation.
Now if only they'd offer an Aero-enhanced version of "Clippy"...
Posted by jeffrey.trester at 6:59 PM | Comments (0) | TrackBack
Can SanDisk Sandbag the iPod?
Electronics | Aug 21, 06
SanDisk, which tripled its MP3-player market share to 9% this year, is apparently hoping that superior price/performance characteristics will allow it to grab market share from Apple. The Wall Street Journal reports SanDisk's new Sansa e280 will be priced at $249.99, and with its 8 GB capacity, it offers twice the storage of what the Journal calls the "comparably priced" Nano.
However, there may be a few problems with this analysis. First,"comparably priced" is a relative term. That 4 GB Nano is currently offered for just under $225 by merchants on this site, a discount of 10% to the e280's proposed price. Further discounting of this mature product is entirely possible, and so is the addition of a few more gig of flash. More significantly, for just under $275, vendors are offering the Apple iPod Video 30 GB – 5G, the fifth generation video iPod. True, that 30 GB isn't flash memory, and form factor is, well, a factor. But that iPod has almost four times the storage capacity of the e280, and, if its cult status is any indication, few seem to regard it as overly bulky. And of course that 30 GB buys you a lot more squinting at tiny videos. Much as I might like to see some robust competition in the MP3 player space, if SanDisk's new value proposition is as reported, it hardly seems to blow Cupertino's offerings away. And indeed, the Journal notes that SanDisk's gain in market share has come at the expense of other non-iPod MP3 players; barely a dent has been made in Apple's sales, which stand at just over three quarters of the market.
It's worth noting that SanDisk is reportedly cutting the prices of its other MP3 players, presumably including the Sansa e260 (top image below), by almost 30%. That will make an already attractive line more appealing to consumers in the approaching holiday shopping season. And in a time of gas-constricted budgets, a lower price point can only help SanDisk's competitiveness.
In the final analysis, Apple's iPod, elegantly supported by the firm's online content distribution, presents a formidable citadel, the storming of which may require much more than marginal, let alone debatable, discounts. Yet SanDisk's moves, and the potential emergence of competitors to iTunes, do raise the question of how long Apple's market position and/or profit margin can withstand the forces of commoditization in the portable player market. But in a world where many of next year's new car models will sport built-in proprietary iPod connectors, Cupertino seems to have a fair bit of "lock-in" effect on its side.
Posted by jeffrey.trester at 7:19 PM | Comments (0) | TrackBack
Digital SLR Price Rebellion (With Canons!)
Digital Cameras & Camcorders | Aug 10, 06
Lately, online merchants have been touting significant cuts in the prices of digital SLR cameras, especially in the Canon Rebel line. A quick check of the price histories of various popular models seems to prove these claims out.
Consider the Canon EOS 350D Digital Rebel XT with 18-55mm lens, currently the most popular digital SLR on this site. As can be seen from the graph below, following a period of stability, recent weeks have seen a drop in the low price offered by merchants from around $720 to just shy of $620.
Time Period: 3/7/2005 through 8/7/2006
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price
But the cuts aren't only in Canon pricing. Indeed, it seems many of the more popular SLR cameras have been marked down sharply as the thermometer has risen. For example, over the summer, the somewhat more up-market Nikon D200 Digital SLR with 18-70mm lens has fallen from approximately $1.900 to $1,525.
As the transition from film to pixels gets closer to completion, many have commented on the inevitable slowdown in digital camera sales. Now, as we enter the late summer vacation period and with "back to school" shopping upon us (and holiday buying following soon after) manufacturers and retailers may be adjusting price points downward to accommodate the new reality. Apparently, not even the SLR digicams favored by more serious shutterbugs are immune to this effect.
Posted by jeffrey.trester at 10:02 PM | Comments (0) | TrackBack
Sharp Price Cuts on AQUOS LCDs
Electronics | Aug 4, 06
Significant discounting of LCD screens prior to the holiday season has been widely expected, but it appears the race to the bottom just got an early start. Reports have Sharp Electronics dropping suggested retail prices on some of their AQUOS line by as much as $700.
Even with those cuts, the new SRPs aren't anywhere near as low as the prices for those LCDs offered by many vendors tracked by PriceSCAN.com. For a case in point, consider the 37 inch LC-37D40U, the most popular AQUOS on our site and the one for which Sharp reportedly instituted its largest SRP cut. Yet Sharp's $700 SRP drop, from $2.999 to $2,299, is easily bested by PriceSCAN.com's vendor price of less than $1,400. Similarly, Sharp lowered the SRP on the 45-inch LC-45D40U from $3,999 to $3,799, but the lowest price on PriceSCAN has to fallen to a little shy of $2,300. It's worth noting that these are not full 1080p resolution sets, and it may be that Sharp is focusing reductions in this area as that higher HD standard becomes more widely available in the LCD market.
To be sure, lower suggested retail prices are likely to mean even lower vendor prices in coming weeks. But the lesson here is that discounting often runs way ahead of SRP reductions. Before paying full retail, best to price compare online, lest you experience a rather "sharp" case of buyer's remorse.
Posted by jeffrey.trester at 1:16 AM | Comments (0) | TrackBack
