And for You Windows Users, We’re Offering Snow Leopard Home Premium, Snow Leopard Ultimate and Snow Leopard Insanely Great
Apple has repeatedly characterized its forthcoming Snow Leopard operating system as an under-the-hood upgrade to the Mac OS, one that focuses on performance enhancements rather than new features. And clearly, it’s designed to set a new standard for quality and lay the foundation for future OS X innovation. But with its $29 price point, it’s intended to do something else as well: Undermine Microsoft’s (MSFT) Windows 7.
So says Piper Jaffray analyst Gene Munster, who, in a research note issued this week, suggests that there’s more value in Snow Leopard than just the minor bump it will give to Apple’s (AAPL) bottom line.
“We believe Apple is using a minor upgrade to its operating system as an opportunity to sell it at a lower price ($29 vs. $129 previously) and market the new OS as a selling point for the Mac platform over the Windows platform,” Munster writes. “In other words, Apple is promoting the Mac platform as a superior alternative to Windows in terms of newer technology, more frequently, for less money. The release of Snow Leopard is not about new features; rather, it is about keeping Mac users up to date with the latest technology vs. Windows XP and Vista users on antiquated technology.”





Comments
Apple is lowering its prices as a way of stepping back. Microsoft has commoditized and mainstreamed Apples offerings. Apple’s new prices reflect this. Apple is admitting: “it’s over”
Posted by david staub at August 25th, 2009 at 11:47 amIt’s significant when Apple sells its software below cost. No one does this when they know they are strong.
Wow so apple is offering OSX to win users?
Can I just intstall it on my wintel machine?
Thought not, so I need to throw out my laptop throw my game machine throw out thousands of dollars of software throw out my “broswer” machines….
Not such a good deal really, I can get window 7 for about $30 to $50 when preinstalled on any box be it a cheap one or a super amped game machine..
Posted by jack deed at August 25th, 2009 at 12:29 pmI have not ordered Snow Leopard yet as I am waiting for the “Snow Leopard Ultimate X” version.
Apple will need that version to avoid being commoditized [sic] by Microsoft. And, of course, it will be sold below cost.
Posted by Dave Barnes at August 25th, 2009 at 1:24 pmBig deal – Apple users will still be Apple user – same with Windows. Nothings changes.
Posted by Hrje bloc at August 25th, 2009 at 1:52 pmHow surprising that the previous commenters would defend Microsoft, on the back of their Vista debacle, against Apple’s proactive decision to produce a broad architectural maintenance release at minimal cost to its userbase.
The performance (and security) of almost every software application is compromised by change over time, as code branches and redundant routines are added. One of the significant problems facing Windows is that it is weighed down by legacy code – few would deny that it is a bloated and slow OS.
Apple’s strategic decision to fundamentally ‘clean up’ OSX to remove the kruft of eight major releases will pay huge dividends. Not only will its users see immediate performance improvements, Snow Leopard will make OSX more extensible into the future.
If only Microsoft had done this occasionally, Windows might not be the [[insert adjective here]] OS that it is today.
Sincereley,
Posted by Mark Newton at August 25th, 2009 at 3:40 pm%$#@!
>>It’s significant when Apple sells its software below cost. No one does this when they know they are strong.
Yes they do, all the time, in the hardware business.
Posted by Walter Zorro at August 25th, 2009 at 3:48 pmBing woke up Google and Win 7 woke up Apple. The customer is winning.
Posted by david staub at August 25th, 2009 at 4:12 pm