One of Microsoft’s recent arguments against the Mac has been its notion of an “Apple Tax” that buyers of Apple products pay. Recently, Microsoft went on the offensive against Apple by distributing a (visually) clever fake tax return outlining the details of the “Apple Tax” as presented to them by a researcher they paid to calculate it. The problem with this advertisement as presented by Microsoft and its researcher is that it makes too many assumptions. Then again, it’s only intended as an “example” and not necessarily reflective of what most potential “switchers” would see.
Mac fans: I’m about to say something that’s probably going to make you light up your flamethrowers. But if you wait a moment before you pull the trigger, you might just agree with my “endgame”…
It’s appropriate for Microsoft or Linux advocates to make a comparison between the sticker price of a Macintosh and the sticker price of a PC with comparable hardware specifications. And if you compare the hardware specifications, you’re probably going to find in the majority of cases that the Mac is a little-to-a-lot more expensive than a PC built to match those specifications. However, calling that price difference an “Apple Tax” is fair only to a certain extent.
Since I have a Mac Mini sitting here on my desk, let’s use that Mac model as an example of what I mean. Suppose I live where space is at a premium. To me, it might be worth more to have a computer that is as small as possible. The Mini is, without question, very small. A low-end PC with the same specifications is probably, in most cases, going to be larger. Perhaps I’m willing to pay more to regain some desk or floor space. If so, at least some part of the price difference between a Mini and a standard PC is reflected in that added value to me.
Similarly, the Mini ships with a remote control. If that’s a feature I’m going to use, I need to factor into the price of a comparable PC the hardware (and perhaps software) needed to use that remote (unless the PC happens to include one, which most do not).
The Mini also (at least in my iteration) ships with iLife. If that’s software I will use, then the value of that software should be counted at least at the price I’d pay for Windows (or Linux as appropiate) software to do the same thing. On the other hand, if I don’t use that software (or already have a license to a Windows package that’s equivalent to me), its net value is zero.
Other aspects of the Mini need to be factored into the equation as well. Is it worth a little more to have a slot-loading optical drive? Do I place a value on the “pulsing” power light and similar little touches? Is UNIX compatibility important to me? And so on. Some of these things (like that pulsing power light) are difficult to place a specific monetary value on .
But there situations where, without question, there is an “Apple Tax”. Consider a lifelong Windows user who decides to switch over to the Mac and ditch the PC in the process. In this situation, the user plans to switch completely, and terminate all use of Windows and its applications (i.e., no Parallels, Boot Camp, etc.). The user probably relies on certain software, such as Microsoft Office, Adobe Creative Suite, or Nero Burning ROM. The user will need the same, or very comparable, software on the Mac. Thus, the price of Mac OS X licenses for Office, Creative Suite, and a CD/DVD burning application should be considered part of the equation. (I know there are free applications that do similar functions, but let’s assume these aren’t suitable for this particular user because they weren’t suitable on Windows, either.) The cost of switching to a Mac, now, is substantially higher than switching to another PC. Not only does the user have to pay more for the Mac than a standard PC, but the user also has to shell out cash for software that probably would not be necessary for a new PC.
Similarly, there are situations with zero “Apple Tax”. If those little Mac “touches” above are worth something to me and I don’t need to buy any new software or peripherals to switch to the Mac, then the “Apple Tax” is essentially zero. I’m getting something for any extra money I’m paying and I’m not losing anything I care about.
By the same token, there is a “Microsoft Tax” associated with switching from the Mac to Windows, and even a “Linux Tax” associated with going from the Mac to Linux… or not, depending on your personal values, needs, and situation. I think it’s fair for Microsoft to talk about an “Apple Tax” because there is validity to the concept, but it’s equally fair to realize that switches in the other direction have a “tax” on them as well.
Even switching from one Windows PC to another can include a “tax” of sorts. For example, if I switch from a Windows 98 PC to a Windows Vista PC, it’s likely that at least some of my software isn’t going to work. (I personally am surprised at just how much of the older software still works, but not all of it does.) Thus, this software becomes a “tax” associated with the new machine. And if you don’t build your own PCs as I do (and technically even if you do), Microsoft has tried to tie the OS license to the physical hardware, meaning you’re supposed to buy a new license anytime you get a “new” PC. (Though what constitutes a “new” PC is a point for debate… If I keep the same case and some of the components, is that a “new” PC or merely an “upgrade”? If I move all the components to a new case, is that a “new” PC?)
For me personally, a switch from a PC to the Mac entails a level of “Apple Tax” I am unwilling to bear. Having switched from the Mac in the late 1990s, I’ve come to love the fact that I can replace just a few parts of my PC each year at a relatively low cost, and still be using the latest (or near-latest) technology. I may spend $200-600 to do an upgrade, in the process getting a new motherboard, CPU, and RAM that effectively make the existing box as fast as a brand-new off-the-shelf machine. If I decide to scrap the entire system and start over, my typical budget is in the $1200 range. For that price, a Mac Pro is way out of my league, leaving me with a MacBook, iMac, or Mac Mini as options. The MacBook isn’t very upgradeable compared to a desktop PC, so I’d rule that out. The iMac and Mini are also “minimally upgradeable” by my definition. (For example, I can’t go buy a new off-the-shelf motherboard and CPU to drop in the iMac or Mini’s case to bump up the speed like I can for a typical PC.) The Mac Pro would mean doubling or tripling my initial budget (though I might be able to put off an upgrade longer with it), and still isn’t quite as upgradeable as the PC. And for me, Apple’s little touches like the slot-loading optical drive, pulsing power light, case designs, etc., carry little to no value. None of this even addresses software or peripherals, some or all of which I’d need to replace. Thus, for me, the “Apple Tax” is too unbearably high and not justified by any difference in “build quality”, style, or other features. The PCs I build all contain carefully-chosen and high-quality parts, so I don’t see a Mac’s build as superior at all. Your situation, however, is probably different from mine. Thus, your “tax” could be lower (or higher).
When I considered my recent Mac Mini purchase, I thought about it a lot. I use Windows probably 95% of the time and Linux the rest. In 11 years, I haven’t needed a Mac for anything other than the work I’ve done on this site, and until very recently I could get what I needed for that from a Mac at work. (When my job responsibilities changed in 2006, I no longer had as much access to Macs.) In the end, I weighed the factors involved and came to the conclusion that the $250 out of pocket was justified by the material I’d gain for this site during the Mini’s lifetime. The Mini’s lack of upgrade options was of minimal importance as it would not be a machine I used a majority of the time. I’d still have and use my Windows PCs, so there’d be little to no software “tax”. I could use my existing keyboard, mouse, monitor, and KVM switch. In short, there was little loss and a decent potential gain, so I bought it.