Dells Much Cheaper than the MacBook Pro? Well, Sometimes…

Back in the olden days, say pre-June of 2005, people knew Macs cost more than a comparable PC. But, with the fundamental differences in architecture, people chalked the price differential up to the processor. It was a convenient fiction, the G5 didn’t cost substantially more than the latest chip from Intel (and likely cost less). Hence, any pricing discrepancy had more to do with what Apple thought they could get for the machine than any fundamental increase in what it cost them to make it.

Those days are on the way out, with the transition to Intel direct comparisons are possible and much more compelling. Take this recent comparison by ZDnet writer George Ou. The conclusion is that the Dell equivalent to the MacBook Pro is a thousand dollars cheaper. Upon initially examining the claims, it seems as though the case was cherry picked to provide the widest discrepancy possible. The author uses a coupon for the Dell, the top of the line MacBook Pro and doesn’t give much detail on the additions and deletions from each machine. Clearly, the claims need to be carefully investigated.

Before examining the claims in detail, it is important to note that the MacBook Pro is worth every penny. Apple is claiming a three to four week ship time on the machine, so there is no real incentive to charge less and, face it, Apple’s job is to sell as many computers as they can make for as much of the green stuff as possible.

After running though the exercise, the final price of the Dell, with the coupon, was $1659. A MacBook Pro runs $2,499 (if you call on the phone Apple will lop off fifty bucks). So the disparity? A significant $850. That comparison took some effort, options were added just to get the machine to the $2,000 mark pre-coupon so the coupon could be redeemed (and yes, it is actually cheaper to get more stuff in this case).

But that is Apple’s current highly sought after top-o-the line machine, if we take a step down and repeat the process using the 1.67 GHz MacBook Pro as a target the grand total for the Dell comes to $1,384. The MacBook Pro 1.67 GHZ model retails for $1,999, a number which leaves us with a difference of $615. Still substantial.

There are some unavoidable differences between the two machines. The Dell offers better resolution than the Mac (1680x1050 versus 1440 x 900), but the increased resolution comes at a price, the Dell features a 17” screen. Some would argue that bigger is inherently better and this is true for a desktop, but for a laptop it is more a question of personal preference. For the more slug-like among us, the expanded screen real estate might be deemed as a compelling reason to go Dell—a 15” screen is preferable for those who intend to actually carry the machine around. The Mac can also run OS X which is, if you’re a fan of the Mac, a must have. On the other hand, the Dell runs all Windows apps without having to resort to emulation.

It is at this point that people who choose Mac’s will note the value of OS X, iLife, good looks and the joys of not being forced to run various spyware blockers and virus checkers constantly. Some people find those reasons to be more than enough justification for the extra cash outlay. Instead of twisting around and justifying the price of the Mac it is more enlightening to think of the bigger picture. First, we note that the MacBook Pro, in either configuration, is aimed at Professionals. Professionals generally get others to buy their machines for them. The comparisons likely won’t be as lopsided when the consumer, uh, MacBooks arrive.

That said, those with long memories will remember Steve Jobs saying that if you had to pay 10% to 15% more for a Mac it wouldn’t be a big deal. He was right, a 15% percent premium for a Mac isn’t a big deal. But, this isn’t a case of 15%, you’ll pay a full third less for the Dell! That sort of premium is a lot to ask fence sitters to fork over just to taste Mac goodness. Of course, there is the coupon to consider, and most people don’t go to the trouble of using coupons. Without the coupon, the Dell (you get a $400 dollar discount without even trying) runs $1884. Which makes the Dell a full 25% cheaper than the Mac.

On the other hand, if you compare the MacBook Pro to the Dell XPS series the comparison is much more favorable. The XPS series is Dell’s attempt to shoehorn their company into the high-end laptop market. In order to go from low-priced mail order outfit to high-end innovator they try to make the XPS badged machines reek of style and slick looks, like machines from Sony or Apple. The results are less than impressive, but the price is right up there with a Sony or Apple machine. Apparently Apple, Dell and Sony all believe cool looks are worth a ton of the green stuff.

Macs may carry a bit of the cool factor, but the market for people who want to look extremely hip holding their computer is limited. Consumers positively despise the notion of a company making an unreasonable amount of profit. They may have been willing to pay a premium (and the premium wasn’t as steep as the above example) when there was a fundamental difference in hardware, but now they are being asked to pay several hundred dollars more just because Apple is artificially locking OS X to Macs only. When the comparison is this clear, consumers won’t put up with the gouging for long.

Or will they? The Dell offer was carefully chosen to produce the lowest-cost comparable machine. In reality, most consumers aren’t going to jump all over themselves looking for the very cheapest way to get that Dell. Dell offers, roughly, nine-million models and their product line is as confusing as humanly possible. Attempting the same exercise with consumer laziness in mind yields a price for the Dell of $2,399. That makes a Dell E1705 $740 cheaper than a Dell E1705—for the same machine! In the end, comparing the new MacBook Pro to equivalent Dell hardware speaks as much to any individual’s shopping acumen, when using Dell’s site, as to inherent value differences between the MacBook Pro and Dell equivalents.