Three Guys and a Podcast: Apple News & Analysis
Apple's new and revolutionary anti-pricing for operating systems, creative and productivity software isn't revolutionary or new, and it certainly isn't free. These are the claims from a slew of Microsoft apologists.
"Though users can cheer the free operating system now, the move also gives Apple more leeway to charge premium prices for its upcoming gadgets," stated MarketWatch's Quentin Fottrell. Morningstar research firm's Brian Coletto believes Apple will be charging a premium on hardware, making up for the giveaway of free software. "Apple has taken the strategy of giving its software away for free in order to improve the customer’s user experience and spur the purchase of premium hardware. It’s a clear contrast to Amazon, which appears to be selling its tablets at close to cost, in order to drive media and content purchases,” he says.
The only problem with these arguments is they hold up about as well as a 10 story building built on a foundation of wet cardboard. Not only did Apple announce a slew of free software on Tuesday, they released enhanced hardware with no price increases. Apple delivered all-new Haswell based Intel MacBook Pro's, but lowered their pricing by $200. The new Mac Pro also launched on Tuesday, and came in thousands less than pundits had anticipated.
The facts coming out of Apple's special event on Tuesday are simply this: Apple is giving away software for free while lowing prices on their hardware.
Apple's last OS X Mountain Lion sold for an upgrade price if $29. iWork solutions were selling for as little as $9.99 each on iOS. The insinuation that Apple was reaping huge profits from these software sales and will need to recoup them with hidden costs and increased hardware pricing elsewhere is laughable. Apple's bold move of offering free software while lowering hardware costs just tipped the scales for a slew of buyers, and it is those users that will soon be making Apple their new home.
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