

Apple economics: a free laptop every year. - eroded
http://dmurray.org/apple-economics-a-free-laptop-every-year

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cscotta
I'd like to offer a counterpoint to the author's suggestion that "you'd be an
idiot not to buy [and dispose of] a new laptop every year." I'm a software
engineer and put a lot on my computer's shoulders, running an entire cluster's
worth of software as part of my development environment.

I value longevity and durability in products I buy. It's nice to pick a
machine and stick with it. It's a long-term companion. It's about slowing
"disposable computing's" cycle of production and obsolescence. It feels good
to prove that, with a few upgrades over its lifetime, a well-engineered
product can be useful -- even as a primary computer -- for years to come.

My Spring 2008 MacBook Pro (<http://cl.ly/2H1l2X1Q2w181Z2P1Y3P>) will be three
years old this Saturday, and I couldn't be happier with it. My previous
machine was a 15" PowerBook G4 purchased in 2004. Both have been fantastic
primary computers. An occasional upgrade and maintenance can make all the
difference in extending the useful lifespan of a machine.

A few months in, I maxed out the memory to 4GB, which is still sufficient
despite running our entire stack and an IDE or VM. Last summer, I replaced the
7200RPM drive with a 160GB X25-M. A few months ago, I added a second 48GB SSD
drive via the ExpressCard slot to regain a bit of the storage sacrificed by
choosing a faster drive. Over the three-year lifetime of the machine (so far),
these upgrades cost about $625.

During that time, the manufacturer has also done a great job standing behind
the laptop, replacing the keyboard/top case, one battery, and one power
adapter. I'll take it in for one last servicing before the warranty runs out
(to fix an unreliable Caps Lock key and clean the DVD-RW drive I never use),
and may purchase one more battery at some point. Aside from this, it's in
perfect condition and plenty fast enough for Java/Scala/Python/Ruby/Android
development and testing.

This computer's followed me from the week I graduated college as an aspiring
freelancer through three years of building a career in software engineering.
It's got some life in it yet.

~~~
DanI-S
As much as I agree with you about 'disposable computing', he's not really
advocating disposing of the computer - he's selling it to somebody else. In
the process, he's allowing somebody who couldn't otherwise afford it to buy a
long-lasting machine like yours.

It may even be true that he's helping the environment by allowing more people
to buy longer lasting machines.

~~~
sorbus
> he's allowing somebody who couldn't otherwise afford it to buy a long-
> lasting machine like yours.

Only very slightly. He's selling it for almost the same price he bought it
for, but happens to have a student discount that makes it 15% cheaper.

------
nevinera
Doesn't add up.

The only way you can keep this with the numbers given here is if you buy near
the start of a release cycle and _always sell before it ends_. In order to do
both, you have to both predict the release schedule well AND spend a month or
more with no computer while you wait for the new release.

The numbers in the long run are weaker, since some of your purchases will
invariably cross release cycle boundaries. Buying a new one every year may in
fact cost less than buying a new one every 2 years (depending on the resell
curve, which _you do not know in advance_ ). Regardless, it's certainly not
such a clear win that you can insult the intelligence of everyone that doesn't
behave this way.

~~~
wtandy
My thoughts exactly.

However, this works VERY well with iPhones. I have had every iPhone starting
with the 3G, and have upgraded each year. Both times, I have sold my previous
phone on ebay for at least $100 MORE than the subsidized cost of my new one.

~~~
afterburner
You know the unsubsidized cost of the phone is about $800-$900 right? Those
people you're selling to are buying it at one third the price.

~~~
wtandy
Well aware of this (though I think it's actually $600 for the cheapest in the
US). I'm simply pointing out that if you are planning to remain on a given
network for a long time, there's no reason not to upgrade the phone every year
to the newest available model AND make a little money.

~~~
lamnk
Wait, i'm confused (i'm living in Europe): US carriers don't require you to
sign another two year contract when you buy their new subsidized phone?

~~~
tylerhowarth
US carriers do require this. After one year, AT&T usually lets you get the
newest iPhone at the subsidized cost if you sign another contract. It still
locks you in to two years from the date that you last bought a new phone.

~~~
lamnk
But is the old contract still in effect ? If yes, then the profit selling his
old phone probably doesn't cover the money he must paid for one year left of
the old contract. That's why i'm confused.

~~~
tylerhowarth
Why would you have two contracts?

Buy iPhone 3GS June 2009, Contract ends in June 2011. June 2010, sell 3GS, buy
iPhone 4 and now contract ends 2012.

It is an early upgrade which requires you to sign a new two-year contract.

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guylhem
Could be interesting if: \- you don't need a custom built laptop (ex: max out
ram, replace the optical bay by a 2nd laptop, non US or non local keyboard) \-
your time is cheap or you could not afford your laptop otherwise, because time
is money even even if it take hours to set up, add that the time to make the
transaction, sell, buy a new one, spend time without a laptop etc. \- you make
sure you keep the laptop in a pristine state to maximize resell value - ie no
tagging or engraving, which could be useful theft deterrent (I have a huge
laser-engraved domain name on mine - bigger than the apple logo, because I
care more about the data than the potential resale value)

Could be good for students. Not sure about anyone else. And it reeks of a
parasitic mindset (suggestion to ask a student to do the purchase to take
advantage of their discount or import a US laptop without paying duties/sales
tax)

Funny story- I was on vacation and I had a _software_ problem that caused
custom made software crash. An urgent need for a big client made a trip to the
applestore to buy a new laptop the most logical move- it was already
installed. It took an hour for the purchase (trip included), 20 minutes to
install the software, do what was required and provide the results. The client
got its result 1 hour + 20 minutes after its call.

And _that_ paid for this laptop and a good leftover, not including the great
experience for the client who knows that wherever you are, you will deliver on
time.

------
devmach
Why should i buy every year a new laptop ? even it's free ? every time i buy a
laptop , i have to;

\- backup my files / projects

\- destroy my personal files

\- sell my old laptop to someone and hopefully get my money

\- copy files to the new laptop

\- set personal settings ( wallpaper, mouse speed etc )

\- and optionally : get used to new keyboard layout

\- hope for a fix if there is a some hardware/design error.

for programmers, i think old but working laptop seems fine to me.

~~~
Bud
Destroying your files is a single step, well-implemented in Mac OS, and you
don't even have to do this if you simply install a fresh OS and use the right
settings.

Selling your old laptop is easy via Craigslist.

Copying files takes a few minutes with FireWire disk mode.

There is no separate step for "personal settings"; those are copied over when
you copy your home directory over.

There is also almost never a new keyboard layout.

There is almost never a major hardware issue, either.

~~~
kenjackson
_Destroying your files is a single step, well-implemented in Mac OS, and you
don't even have to do this if you simply install a fresh OS and use the right
settings_

I don't think installing a fresh OS will remove personal data sufficiently.
But maybe there is a setting to do a secure clean?

~~~
msbarnett
There's a secure wipe option. You can crank it up to some absurdly paranoid
set of passes, although it takes a day or two to complete at that level given
a reasonably large drive.

~~~
astrange
There is no physical reason to use more than one pass on an HD.

And of course erasing an SSD is near-instant.

~~~
whimsy
My understanding runs counter to your assertion. Why do you say that there's
no physical reason to use more than one pass?

~~~
astrange
There is no way to detect HD contents past the current write. It has never
been demonstrated that anyone has done it, and data recovery companies will
not recover your disk if you accidentally erase the blocks. The misconception
that you can do that comes from a misreading of a paper by Gutmann that only
applied to an obsolete disk recording method in the first place.

The reason people use methods other than 1-pass erasing is because of
marketing thinking that more passes looks better on the product features. Or
because the IT people enjoy buying heavy machinery so they can destroy stuff
with it.

------
nicw
Whether or not this experience works for everyone, I have found that Apple
laptops/desktops hold their value much longer than their PC counterparts. I'm
not sure if its because Apple tends to spec their machines more on the mid to
high-end of capabilities that allow them to be used longer in a changing
market.

~~~
lotusleaf1987
It's because a Macbook is a Macbook whether its 2005 of 2011, but some
HP-24x454 vs a MX311 is meaningless. That's why Motorola/Samsung are making
their Droid/Galaxy lines.

~~~
kenjackson
The real issue is because HP may release the 24x454 at $2000, but in three
weeks Dell releases the Latitude XY1 that is $100 cheaper with the same specs.
Two months later, Acer has the same specs at $250 cheaper.

In the PC world your pricing competes against every manufacturer. So HP has to
push their prices down on next rev.

Whereas no one else can make an Apple computer. They can set a price and keep
it fixed for a year. There's no knockoffs that can undercut them.

------
atacrawl
I'm considering trying this with the MacBook I bought a few months ago (to
upgrade back to the 15" MBP that I miss), but to be honest, I've heard so many
horror stories about trying to sell computers on Craigslist and eBay that I'm
a little spooked by the prospect.

~~~
jeffclark
Don't be.

If you follow the rules to a T (ship only to confirmed U.S. addresses, ship
with tracking, require a signature) you're covered in the eyes of PayPal.

I've probably sold 5 laptops and (easily) 10 phones for myself and friends on
eBay.

Cover your bases, require PayPal and a confirmed address. Don't budge on these
points and you'll be fine.

PROTIPS:

* Absolutely start with a $1 lowest bid, no reserve. The market will bring your laptop up to acceptable prices.

* Include as many words and pictures as you can in your description. I routinely just copy the specs from one of the tear-down sites for my exact model and paste them in. Buyers find comfort in knowing exactly what they're buying.

* Take as many hi-res pictures as you can. Don't worry about the scratch. Buyers find comfort in knowing exactly what they're buying.

* This is hugely overlooked: Make your auction end on a Friday or Saturday night around 11pm EST. This is when the nerds with money are sitting on their couch putzing around eBay looking for a new lappy.

~~~
albedoa
For someone who has only sold two or three things, it is always awesome to
hear this type of advice from experienced sellers.

Can you explain why you recommend passing on the reserve? Even if the product
will sell for a price that the market considers acceptable 100% of the time,
what is the harm in setting a reserve regardless?

~~~
jeffclark
Only because it turns some experienced buyers off. And your dream buyer is an
experienced buyer.

A reserve means the seller can bail at any point up until that reserve is met.

Imagine that you're selling a laptop that's going for around $800 in other
auctions. But you're not entirely sure you even want to sell your laptop. You
put a $2,000 reserve on it just to leave the option to bail available at the
end. An experienced buyer realizes this and will likely just pass on your item
out of principle.

If it would make you feel better to place a reserve on your item, at least
state right up front what your reserve price is and why you've placed it in
the first place.

In my experience, however, I've never once been low-balled on an auction.
There's a median price for your item in it's condition across the entire
marketplace. If you're OK with that median price, don't post a reserve.

Spell your brand and product name correctly and you're virtually guaranteed to
get close to that price in the end.

------
jws
_Not a college student? Find someone who is._ – beware of financial plans
predicated on fraud.

~~~
jessriedel
I could be wrong, but I don't think there's anything _illegal_ about having a
student buy a laptap and then immediately resell it to you. (On the other
hand, it might be illegal to directly claim that you are a student when you
really aren't.) Whether you think that's _immoral_ probably has to do with how
moral you think price discrimination is in general.

~~~
jws
Student discounts generally require that it be for personal use.

Edit: Added after the jrockway and tylerhowath replied, but didn't want to
reply to both:

From the Apple Sales and Refund Policy… _Purchases from the Apple Store for
Education Individuals are not for institutional purchase or resale._

I presume the same applies to the in store discount. Apple has enough lawyers
to cross that "t".

~~~
jessriedel
Putting "From the Apple Sales and Refund Policy… Purchases from the Apple
Store for Education Individuals are not for institutional purchase or resale"
in a refund policy or anywhere does not mean Apple has the right to restrict
resales.

~~~
jws
It doesn't say Apple can prevent the resale, it says the buyer is not entitled
to the educational pricing if they are buying the machine for the purpose of
resale. The fraud is for the student to buy a machine under the pretext of
using it himself, knowing full well that he is buying it for resale.

I'm sure it's either in, or incorporated by reference, that text that people
don't read about accepting conditions of a sale.

In practice, Apple can't afford to sue every weasely kid who thinks he's
entitled to free money for being clever. So they also restrict it to one
computer a year and take their losses on the young criminal masterminds.

------
m0nastic
Historically, I've updated my Mac every time a new release comes out (mostly
of Macbook Pros). I've been doing this for about the past eight years.

About a month ago I broke from that pattern and bought an 11" Air (right after
the new Macbook Pros came out, and pretty far into the current cycle for the
Air's). It was the first time that the new machine was way less powerful than
the old one (also, so far, the best machine I've ever had).

Usually I'd sell my old laptop for about 66% of the price of the new one.
Originally, I sold them on Ebay, but it got to be a pain in the ass dealing
with people there (I had one guy complain after buying a Macbook Pro from me
that the screen had smudges on it. Not marks mind you, but "easilly wiped off
with a rag smudges".)

After that I started selling them either to friends or on craigslist.

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FrojoS
Apple's Computers are getting faster and cheaper with every release. Almost as
fast as the competition, in some cases faster. The difference is, that used
Apple products don't loose their value as fast.

I got my first Mac this year and I have to acknowledge, this company earned
their high profit margins very well.

Oh, and I agree with the other posters. You can not, as the author suggests,
sell before a new release, if you need a computer all the time. He switched
the product line, from a Pro to an Air, so this might be the reason why he has
overseen this problem.

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r0s
I've always considered laptops to be disposable computers.

Are the people buying used, at a student discount price, really getting a
machine of that value? If it's out of warranty, any small hardware problem
means disposal.

Apple certainly has a strong brand with high perceived reliability. That's not
value. Here's the rub: Warranty extends to the expected life of the machine,
set by the producer of said product.

Everything else is brand loyalty.

------
JCB_K
Interesting. A friend of mine used to be an amateur cyclist, at the highest
(non-pro) level. Through his club he could buy a bike for _very_ good prices.
So he'd buy it for 2.5 grand instead of 5, use it for a year, and sell it half
price...so 2.5 grand.

It's a one-off big investment, but from then on he had a new bike every year,
practically free.

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Artagra
I'm not quite sure the every year upgrade makes sense, for all the reasons
others mention. But I have seen that if you upgrade on a 2 year, 3 year or 4
year cycle, in South Africa at least, it costs you about the same in the long
term.

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brosephius
according to ebay, my 2-year-old macbook is worth half the original purchase
price. not quite free for me :(

~~~
buckwild
I think the key is selling it in a year. A year old macbook retains most of
its value. It's actually the same thing with BMWs ;-).

~~~
nagrom
The real trick would be obtaining the 15% student discount with a BMW. If I
could figure that out, I'd have a beemer in a flash.

------
MarketingMuppet
How is this exclusive to apple products in any way? A smart buyer can do this
with ANY form of non disposable product.

