Last week, before Apple refreshed it’s line of MacBooks there was a big rumor that they would release a MacBook at the $800 price point, this did not materialize. However, Apple did knock the price of the older-style white MacBooks down to $999, disappointing many. I for one though, am glad Apple did not go any cheaper.
Apple has a reputation of making premium, high-quality products, not on par with products from likes of Dell. If Apple were to release a lesser-priced model it would take away from their reputation as a premium brand, which in turn would lead people (including myself) to question why they are paying that premium. The question would go something like the following: “If I can buy a significantly less-expensive Mac that will be about 80% equivalent to the more expensive model is it worth it to me to spend the extra money?” This question alone would drive Apple prices down, in turn reducing Apple’s profits, which in turn would force them to cut some of the higher-end features of their products to sell more units to keep their revenue up. It is the same reason that Ferrari does not make an inexpensive model.
Additionally Apple users tend to have an emotional connection to their computers, it is not just a utility that they use, as is the case with Windows-based computers (despite what the commercials depict). These people also tend not to replace their computer as frequently as a Dell owner. This is again like someone that owns a premium car like the Ferrari, they are not going to replace it as often as some that drives a Ford Taurus.