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Analyst: Mac mini + Apple Stores = "Match Made in Heaven"

Analyst: Mac mini + Apple Stores = "Match Made in Heaven"

by , 1:40 PM EST, January 19th, 2005

Needham & Co. analyst Charlie Wolf issued a research note to his clients Wednesday that called the Mac mini and Apple's retail stores a "match made in heaven." Noting that the lack of a low-cost entry-level Mac was a "major barrier to iPod-toting Windows users who've contemplated switching to a Mac," he said that the Mac mini "promises to change this."

Working from the fact that Apple's retail stores now account for 16% of the company's worldwide sales and 40% of the company's sales in the US retail channel, Mr. Wolf said that an estimated 13% of Windows users that come into an Apple Store walk out with an iPod.

At the same time, Mr. Wolf said that unlike the iPod mini, the Mac mini will not simply sell itself. With all of those Windows users walking in to buy iPods, Mr. Wolf said that Apple has built a prime vehicle for doing the Mac mini sales job.

"With the facilities and staff to demo the iLife suite running on the mini," wrote Mr. World, "they represent the ideal venue for selling the machine."

He also noted that Apple has frequently been described as a religion by many in the Mac community. 

"If so," he wrote, "the Apple Stores have become the places of worship, succeeding brilliantly in spreading the gospel.  With the introduction of the Mac mini, they finally have a chance to fulfill their second mission -- attracting Windows users to the Mac platform and growing the Mac's market share. "

Mr. Wolf maintained his Buy rating for Apple's stock, which is currently trading lower at 70.57, down 0.08 (-.11%) on moderate volume.


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:iggyb Posts: 112 Joined: 09 May 2003
Subject:

stock is at $70? Geesh.

I agree. The mini will create many switchers that before hesitated to the large price tags.

Close Name:mahuti -   TMO Staff Posts: 377 Joined: 09 Jan 2003
Subject: Religion

I know I bow down to my Mac everyday for allowing me to avoid the Windows hegemony.

Close Name:kenaustus Posts: 602 Joined: 27 Jun 2003
Subject: Hold it in your hands

Just like the iPod, when people hold a Mac mini in their hands they are going to want one. It's the Apple magic in the design area that is going to wow them. Then have someone do a little "show & tell" on iLife and a unit will be sold. Some will get the Mac mini and some will go for something else, but the mini is going to be a killer for getting people interested.

The iPod shuffle is also going to get a lot of people into the Apple Store, just like the mini.

View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: Wait Till They Try 256MB Memory
Close Name:dux5 Posts: 112 Joined: 02 Jul 2002
Subject: It's also a match because ...

It's vital to have a sales person there to explain what the Mini is and what it isn't.

I can just imagine some guy picking up a mini for his first Mac because it's affordable.

He gets it in, plugs in four cables and is on the Web in 10 minutes.

Then his kid gets on the machine and starts bitching about it being a piece of junk because it's not as good a gaming machine as the PIII Dell with 2Gb of RAM that's in the next room.

That experience could turn a lot of people off and IMO buyers need to know that they're getting a great machine for $500 ... but they're getting a bottom-of-the-line machine for $500.

Will it do a hell of a lot? You bet.

Will it compete with a top-of-the-line Windows-based machine? Only in many areas (OS and included apps), but not all (speed).

Close Name:Steve W Posts: 482 Joined: 22 Nov 2002
Subject: Re: Wait Till They Try 256MB Memory

Quote
RealitySchmuck wrote:
Their Windows friends will all say I told you so Macs are toys.

That's because their "Windows friends" are, like you, blithering idiots.



Last edited by Steve W on Wed Jan 19, 2005 4:21 pm; edited 1 time in total
Reply | Quote
Close Name:Guest
Subject: I know I shouldn't feed the troll...

But it's hard to resist...

"When iLife starts dying with only 256MB and not even simple games will play [...]"

First, iLife is quite happy with 256MB. It is faster with more memory, but it certainly doesn't "die." Hell, I used iLife with 128MB of memory on my old Blue & White G3 and it went quite well. Did about 2 hours worth of wedding video editing for my sister.

Second, the people who bought a $499 Dell/HP/Gateway PC will be surprised with what they can do with their Mac mini versus what they can do with their cheap PC. No iLife on those machines. And while it might be a little slow, it might provide further inspiration for their next machine to be a faster Mac. For people who complain about the speed, you point them at the G5 iMacs. Just like in the PC World--people who complain about how slow their $499 machine is get pointed to the $999 machine.

Third, I'd like to point out the games issue. I looked at some benchmarks the other day for Unreal Tournament 2003. According to barefeats, the eMac with 256MB of RAM and the Radeon 9200 achieved frame rates of 42 frames per second. Not awesome, but playable. The Dell Dimension 3000--at $499--got 13 frames per second on the same test. Again, the fact the 3D games go from unplayable to playable on the Mac mini is a big plus right there.

Close Name:Bookman Posts: 543 Joined: 22 Apr 2002
Subject: Games

My iBook has similar specs to the low end mini - same clock speed, same video, same 4200 rpm hard drive. I can play World of Warcraft, UT 2004, Command and Conquer Generals, not exactly lightweights in the gaming world.

That the Mini will suck for games is hogwash.

It won't do Doom 3, but it should handle pretty much any existing game on the Mac platform, albeit with some eyecandy turned down. 512 of RAM would aid the cause as well.

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject: Re: Wait Till They Try 256MB Memory

Quote
RealityCheck wrote:
... Their Windows friends will all say I told you so Macs are toys.
Recall long ago, mainframers called PCs toys. Look what happen.

Close Name:Guest
Subject: RC doesn't even know what he's talking about

RC, if you're gonna troll, at least use a Mac once in awhile and know what you're talking about.

I have an iBook with 256MB of RAM. It works fine. 512 would be nice, but it's far from mandatory. Go look up iLife's sys requirements... it runs fine with 256. Chump.

Close Name:Guest
Subject:

Oo, Reality Check's getting even more unhinged. Windows users will call Mac Minis "toys" because they AREN'T gaming-machines? That's some good thinking.

Almost as good as being delusional enough to think that the bundled software for Apple's big bid to gain market-share won't even be able to run on it without choking. Nice try, there, but Apple has more business sense than a cabbage. Something like that takes Microsoft levels of stupid, whose share price is falling in the toilet, by the way.

If want you just need games, though, the Mini can run plenty, although not -the- most recent. I have a Windows PC with comparable specs, and it's my PC dedicated to gaming. The computer I use for everything else is a 500MHZ Celeron with 128MBs of RAM and an Nvidia TNT2, because it does everything else without a hitch, and I use it for much more intensive things then the average user ever will. And even then it's stuffed with games. If you want the Mini to be obsolete, then tough luck - it's more than the average user even needs.

Close Name:Guest
Subject:

Or, not -the- most recent games with prohibitively high system requirements, I should say.

Close Name:Guest
Subject: OS X

I am running OS X Panther with all the latest updates on my G3 333Mhz PB with 192MB of RAM. It works fine for me. I use it for email, websurfing, word processing, and spreadsheet. I do not need that much power. I do not do any video editing or listen to music on my computer. I still have my Stereo and Cable TV with digital channels for music.

90% of people who use computers do not need the latest and greatest processor and oodles of RAM.

Granted, I would love to get a G4 PB, but I really don't need it. And I would really be tempted to get a G5 PB with Tiger when it comes out. I might actually buy it since Tiger may not work on my computer.

I think the mini is great. I just wish there was a video-in as well as audio in. It would make a great DVR/computer. I would have bought it by now.

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject: Re: OS X

Quote
Anonymous wrote:
... I think the mini is great. I just wish there was a video-in as well as audio in. It would make a great DVR/computer. I would have bought it by now.
There are firewire-to-video converters in the market.

Close Name:Guest
Subject: mini DVR

Quote
Mace wrote:
Quote
Anonymous wrote:
... I think the mini is great. I just wish there was a video-in as well as audio in. It would make a great DVR/computer. I would have bought it by now.
There are firewire-to-video converters in the market.


True but the Elgato or Formac units are almost as big as the mini. You would lose the look of the mini alone.

Close Name:loki Posts: 37 Joined: 22 Dec 2004
Subject: Gaming Schmaming!!!

I'm tired of everybody knocking the mini for not being a gaming machine. How many $499 Dells are sold as "Gaming Machines"?!?! These idiots need to use the damned platform they are condemning and they'll realize just how frigging moronic their petty pleas are. I have a PM G5 Dual 2.0 with 512 Mb RAM and I run the entire Adobe Creative Suite with mail, messenger, safari, Quark, iPhoto, iMovie, iTunes (pretty much the iLife suite, too) all running at the same time with dual monitors (VGA) and rarely even experience lag, let alone "dying". I say use a Mac for a while first, if you don't fall in love with it, or at least realize the productivity enhancements, then I'm sorry to hear that.... but until the SHUT UP!!!! RC, you need some counseling. The first stage is always denial, and it looks as though you've got a terminal case (or so we should hope).

Close Name:Guest
Subject: I love it when people call Macs toys...

... and then they complain that it can't even run their favorite game. As said above, not all of us game anyway. I'd take iLife over noLife any day.

Close Name:Guest
Subject: Mac Mini DAW Digital Audio Workstation!!!

I've sold my G4 AGP Graphics,(upgraded to 1.0GHz), 640mb PC133 SDRAM, w/60gb 7200rpm Hard drive, with a new Superdrive for $600 to a PC user, switching to Mac!!! He explained his troubles to me about spyware etc, etc, etc. I'm taking that money and some of my own and buying the 1.42GHz Mac Mini+superdrive, and will be booting from an external 160gb firewire hard drive with OS X.3 and a seperate NTFS partition with WinXP for my PeeCee. With the 7200rpm firewire drive, recording will work great, and I'll use the 80gb internal for storage. I hope the Las Vegas Apple Store has them instock.

Close Name:Guest
Subject: gaming?

i've been playing unreal tournament all evening. and now i'm stuck in nanosaur.

oh, i was ripping a dvd while playiing nanosaur

all on my new mac min

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