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WSJ: Letters from iPod Switchers, Would-Be Switchers, & Never Switchers
by , 1:30 PM EST, December 27th, 2004
The Wall Street Journal has published some 27 letters from people who Switched to the Mac because of their iPod, people who Switched because of Windows problems, people who want to Switch but have reservations, and some people who are happy in their Windows world. The letters were published in the column Real Time by Tim Hanrahan and Jason Fry, in response to a column they wrote last week about the iPod Halo Effect.
As anecdotal evidence is concerned, the letters offer some of the first real-world evidence of the iPod Halo Effect, which is the idea that iPod users will Switch to the Mac because they enjoy their iPod so much. The Effect has been cited by numerous Wall Street analysts -- most recently Gene Munster of Piper Jaffray, Rob Semple of Credit Suisse First Boston, Shaw Wu of American Technology Research -- in bullish outlooks on the company's stock, but so far, Apple's Mac sales have not necessarily reflected the Effect.
The letters published by the Journal, however, offer a glimpse into the mind of Windows users who have had their first taste of the Apple experience.
For instance, Michael P. Walton wrote: "As a lifelong Windows user, I was tired of the constant barrage of viruses and spyware. It got to the point where I felt like I needed to be a programmer to keep my Windows PC operational. After receiving an iPod as a gift, I was inspired to research other Apple products. In the last two months I've purchased an iMac G5 for my office and an eMac for home, both replacing Windows machines. I'm amazed at the elegance, simplicity and ease of use of these products."
Representing those who Switched because of Windows itself, John Parsons wrote: "My wife and I each have our own PCs at home, and we're sick of the viruses, spyware and crashes. Sixty days from today we'll be using two 20" iMac G5s. By the way, neither of us has an iPod. We're still lost in the 90s playing CDs."
On the negative side, six of the letters published were from people who are not going to Switch, mostly because of what they perceive as Apple's high prices.
Santo Cuollo wrote: "Apple will not become a household name until they are willing to drive out cost from their processes and offer a "value" machine, and something more attractive than the years-old eMac. They have the better product -- now they need to offer the better value."
You can read all of the letters at the Wall Street Journal's Web site (subscription required). We recommend it as an interesting read, especially of you want a broad snapshot of what is going through Windows-using iPod users' minds.
Observer Comments
QuoteGuest wrote:
Someone finally saying that Apple needs to have a "Value" machine for all the iLemmings.
- Realty Check
Yeah, because nobody on TMO and every other Mac-centric website has ever said anything like that.
P.S. Realty Check says housing prices in several hot markets are overvalued and warns of a bubble burst.
Mon Dec 27, 2004 3:21 pm Subject: WSJ: Letters from iPod switchers, would be switchers ......
Mon Dec 27, 2004 6:52 pm Subject: I don't see the value?
Mon Dec 27, 2004 9:13 pm Subject: And to think I was a die hard Amiga user, and soon i'll be a
Mon Dec 27, 2004 11:14 pm Subject: Driving Out Cost
I find it interesting that Mr. Cuollo thinks "...Apple will not become a household name until they are willing to drive out cost from their processes...". Driving out cost is the classic Dell approach to computers. The problem with this approach is that the first and easiest way to drive out cost is to cease R&D. Dell and other Wintel companies have very low R&D cost, mostly because someone else is doing it for them. That approach would destroy Apple. Why do so many people not understand this? As for the "years old" eMac, new eMacs are like the older ones in looks and market position only. The innards are updated regularly. I just ordered a refurb eMac from the Apple Store
and am looking forward to receiving and using it.
my family just got a new eMac from apple-- to take over as the primary computer from a blue dalmatian iMac G3
we wait a few years because we dont need dual 2.5 G5 processors, and can easily operate on a computer that the TCO will be below $1000. that includes a 3 year applecare
there are these P4 4GHz chips out there, but they hit a MAJOR bottleneck in the frontside bus. the slowest frontside bus on a mac is 533MHz (on the iMac G5 1.6), with G4's being 1:1 bus:processor and the PM's being 1:2 bus:processor. ive seen new dulls selling with bus speeds below 100MHz!
so, compare all the specs, and choose a mac. processor speed is not everything, and if the iMac had a better bus, and a changable video card, i would have one right now
instead i live with my iBook, and save my money for a PM
TRO
Those letters reinforced the impressions that:
- switchers are because of iPods and viruses/ spyware/ adwares.
- doubters are because of game applications, past pre-Jobs Apple's practices, perceived "expensive-ness" and lack of understanding what is a Mac.
- you fall in love with Macs after using them for awhile. Doubters don't understand because they have not used Macs before.
I sense a resurgence of Macs.
QuoteSanto Cuollo wrote: "Apple will not become a household name until they are willing to drive out cost from their processes and offer a "value" machine, and something more attractive than the years-old eMac. They have the better product -- now they need to offer the better value."
And yet he probably went out and bought a Lexus or BMW.
Quality Costs
Tue Dec 28, 2004 11:50 pm Subject: Some will never switch
Those that think there needs to be an iMac advertised on TV for $499 today will never switch. They also think that Ruth's Chris Steakhouse needs to offer a 99 cent value menu.
I'm okay with that. What I DO want is for a well-established Mac-using base of, oh....15%. I'd love 25%, but I think that may be dreaming a little too much.
I think Apple is on track to make inroads of gaining back marketshare. XServe is a big deal, Tiger OS, cool design iMacs...we'll see. Maybe even an iMac that will break sub-$1000 eventually would help move some more switchers. But I'm not going to think that Apple can compete with Dell on price anymore than Dell can compete with Apple on cutting-edge design and technology.
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