Apple's price rise no big deal say users

Apple Computer's decision to raise the price of its iMac personal computer by US$100 in the face of climbing component prices has been largely accepted, if not welcomed, by users interviewed at MacWorld Tokyo 2002.

The price rise, which was announced by Apple Chief Executive Officer (CEO) Steve Jobs during his keynote speech at the show, is the result of a sharp rise in the price of key components, he said.

"Since we introduced the new iMac in January, component prices have been increasing dramatically," said Jobs. "The price for our flat screen has gone up 25 percent in the last few months. The price for memory has gone up 200 percent since we introduced the new iMacs, that means it has tripled in cost. And this is an industry-wide problem, it is not just Apple."

"And so every manufacturer is going to have to do one of two things. Either remove features from their product or slightly raise the prices of their products. So we had to make this choice and we think the configuration of the new iMacs are great and the last thing we want to do is make them less great so we have decided to do price adjustments," said Jobs. "We've chosen $100. We are going to try to keep it as low as possible."

"We hope this is temporary but we don"t know what the component pricing in the industry is going to bring," he said. "We don't know long this will last."

While some users expressed a little dissatisfaction at the price rise, especially those that had been planning to buy an iMac, Jobs' explanation of forces outside of the company satisfied most.

"Price changes happen," said Mayumi Abe, a long-time Apple user. "It happened once before with the G3, too. And when the price was low, we benefited from that so I don't think it's a big deal. As a loyal Mac fan, I always believe in their strategy, so if they say raising the prices is right, rather than taking away some functions, I believe them."

Others agreed that price rises were preferable to reducing functions.

"As the company is moving forward with the new iMac, they definitely should not take away any functions," said Naoe Sato, another long-time user. "I credit the company for always doing something new and revolutionary, so if they need to raise the prices I understand," she said.

However some were a little less understanding.

"I don't like the price rise but if this is temporary, so be it," said Yoshinori Tashima, a Mac user at the exhibition. "It is right for them to raise the price rather than take away functions, however I don't think the new prices are reasonable."

James Yang, president of Denno Co. Ltd., a manufacturer of Apple peripherals, works closely with Taiwanese OEMs (original equipment manufacturers) on production of his company's devices and understands the reason behind the rise, but did not agree with Jobs' decision.

"You cannot increase the market prices in Japan," he said. "In Japan, the yen has fallen so prices have increased but nothing should change. You can only raise your price in the Japan market if you have something very special."

There was also some question of the Japanese price rise. At ¥20,000, the rise is approximately equal to $150, higher than the $100 increase in the U.S. An Apple Japan spokeswoman could not immediately explain the difference in the U.S. and Japanese price increases.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?