There have been a couple of articles in the last week that have really got me thinking about the consequence of using products from the world’s most valuable brand.
The first article that appeared in wired magazine shows that the Ratio of PC to Mac Sales Narrowing to Lowest Level in Over a Decade. Whilst the article cites that industries that use video and photo editing are typically Mac-centric, I think it is easy to see their use in many more scenarios than this.
For the better part of the last two decades, former Apple CEO Steve Jobs focused on the outward appearance of his company’s products with an enthusiasm unmatched by his competitors. The unique designs that resulted from this obsession have given Mac products the “hip” image that they enjoy today. However, this ‘hip’ image also comes at a premium on acquisition, particularly when you consider that if you take apart a Mac computer, and you take apart a PC, you will find that they use the same parts and components. Both have: a motherboard, processor, RAM memory, graphics card, optical drive, hard drive etc.
However, they do not use the same software which brings me to another hidden cost that I had not heard of until recently.
Over the weekend I read an article in the WSJ that stated Apple Mac users booking holidays on the travel firm Orbitz’s web-site were paying up to 30% more than Windows PC users! Mainly because they could and would.
Orbitz are defending the tactic as an ‘experiment’ and believe some of the data has been taken out of context, with their CEO commenting: “However, just as Mac users are willing to pay more for higher end computers, at Orbitz we’ve seen that Mac users are 40% more likely to book 4 or 5-star hotels as compared to PC users, and that’s just one of many factors that determine which hotels to recommend a given customer as part of our efforts to show customers the most relevant hotels possible.”
So basically their website was interpreting the type of software accessing their content and then used advanced algorithms to render the more expensive options if it was Apple based. Whilst this has created a flurry of social media objection and conjecture, marketing data for this company showed that Mac users are associated with a somewhat richer demographic than PC users and Orbitz CEO Barney Harford defends their position stating that its software is simply showing users what it thinks they will want to see and buy.
The WSJ believes that the sort of target marketing undertaken by Orbitz will become more commonplace in the future as retailers become bigger users of predictive analytics.
Clearly, the challenge with this approach is that there is an assumption that if you use a Mac, then you stand out as a big spender. Whether it is true or not, I sense that other organisations will soon follow suit and will try to see that you place bigger orders as a result. In theses austere times, its just another factor of cost that sometimes isn’t considered by the more well heeled advocates of completely corporate wide BYOD scheme.
Personally, I think it’s just another example of how quickly the dynamics of the workplace and technology are moving – and as an Apple user myself I’ll be keeping a keen eye on my purchases!
In you are interested, you can read the WSJ article here
This week I experienced a 24-hour period of extremes! During Wednesday morning I spent some time with the CEO and President of Citrix, following up on some of the underlying channel strategies for their recent Synergy summit announcements in SFO (see previous blog “Are the exceptions of the PC era becoming the new assumptions of the Cloud era?” ). Citrix are clearly moving their strategy and messaging to being able to accommodate the “any-ness” related to devices and cloud and it is in the former that I witnessed the extreme.
Fast forward 24-hours and I was privileged to be invited to official opening of our new facilities for our remarketing, redeployment and recycling subsidiary – RDC. During the Managing Director’s welcome speech and tour, I was amazed at some of the statistics they shared. Just a few to sample below:-
- This unique facility extends to 22 acres and houses 355,000 square feet dedicated to the processing and sale of used IT assets
- Turnover and profitability has grown over 100% in the past 3 years
- They have recently been awarded their third Queen’s Award for Enterprise, this time for International Trade, adding to the awards for Innovation and Sustainable in 2002 and 2009.
- They have remarketed, redeployed and recycled enough equipment in the last 2 years to fill the new Olympic Stadium nearly 350 times!
Gerry and his team should be very proud of the achievements they have made.
So how does this related to cloud and devices? Well, even as RDC looks forward to see what the business holds for them in 2012 and beyond – ‘The cloud’ and consumerisation are the key technology drivers! However, for RDC, this is also coupled with the economic tilting of the world towards the South and East that will also shift the origination and market for used product. Whereas in 2003 less than 5% of their customers’ product was left the UK, it is now approaching 80% that is being exported.
At Computacenter, we know that more and more of commercial and consumer traffic will be driven to the cloud, and people will want to access software and data through a diverse range of devices. In the same way we are developing new services around application delivery, data-security, device management and fulfilment of BYOD/Employee choice schemes – RDC recognise that they need to offer more flexible access to dispose of and purchase used equipment. You only have to look around you to see the diversity and growth – but what is happening to the old devices that consumers are so keen to drop whilst they move to the latest and greatest gadget? (in increasingly shorter cycles).
Well that is where RDC are one step ahead. They have already developed a range of web solutions for consumers and employees, to return and purchase used equipment on-line, which you can see here at Money4computers.com.
That is why we believe in delivering truly end-to-end infrastructure services. So even whilst all of the development around cloud and devices is focussed on taking business to new levels of efficiency, mobility, flexibility and agility – with our capabilities in RDC there is also the opportunity for our clients to make money and save the planet at the same time!
I wonder how many of you saw Apple’s remarkable results last week? If you didn’t, they nearly doubled their quarterly profits and amongst all of the other superlatives in the commentary they added over $40 billion to their market cap! In fact the iPad maker has the biggest weighting of any company in the S&P 500, accounting for 4.5pc of the overall index – it has been quite a while since
so much tech sentiment revolves around just one stock.
One of the other data points I picked up on was that they have now sold over 60 million iPads worldwide since their inception in 2010 and has hence created a category all of their own. Whether it be their financial might or technology innovation – you certainly can’t ignore them.
Apart from the fantastic opportunity this presents business in changing they way they can enable and support their workforce, it has created a lot of headaches too!
To this end, we’ve been busy working with Apple to ensure we have developed our portfolio in line with their with technology to help our clients and provide the type of service that most Enterprise workers have become accustomed to. We’ve even put a little ‘chalk n talk’ video together to outline what we have done. You can check it out here. I hope you like it?