Anonymous (not verified) - March 22nd, 2002
by Alan Sheckter, Videomaker news editor
At Macworld Tokyo this week, Apple CEO Steve Jobs' keynote speech included four significant announcements. Three can be categorized as technological advancements, while one, higher iMac prices, was blamed on higher costs.
Due to what the company called significant increases in component costs for memory and LCD flat-panel displays, Apple ratcheted up all iMac prices by $100. Effective immediately, the new suggested retail price for all three models will be $1,399 for the 700 MHz G4 with CD-RW drive; $1,599 for the 700 MHz G4 with Combo drive; and $1,899 for the 800 MHz G4 with SuperDrive. The price increases only affect iMacs, for now.
In an interview, Greg Joswiak, director of product hardware marketing, said the price increase is affecting all desktop computer makers, but many manufacturers are de-configuring their computers rather than raising prices.
We have seen memory costs triple, and flat-panel prices have increases by 25 percent, Joswiak said. We chose to keep our configurations the same. (Others) create new configurations that obscure what's going on.
Joswiak sited examples of competitors, including Hewlett-Packard, Compaq and Gateway, who no longer offer what they did as recently as two months ago. He said in January, for $800, HP offered the Pavilion 520n, which featured 512MB of memory and a 60GB hard drive. In February, he said HP's 540n cost $850, and came with only 256MB of RAM and a 40GB hard drive.
Jobs, in his keynote, also said Apple has stepped up iMac production to meet higher-than-expected demand. iMacs had a strong demand, more than any other, Joswiak said. We'd love to be more caught up, but now we're in ramp volume, and we can make about 5,000 a day.