A New Look at Mac vs PC - Price to Performance with a Twist

[TurbulentWinds]

I originally began investigating the value Mac hold over time compared to PCs about 2 weeks ago. After about a week of researching and looking for data, I came up with this:

 

I received a good and nontoxic response to my findings, so I decided to venture into one of the most hotly debated topics in the computer world: Mac vs PC. It would be good to read my other post for a bit of context, but it will not be needed. In summary, what I found was that Macs degrade in value at a slower rate than their PC counterparts. The first thing that popped into my mind after objectively proving this, was the price to performance argument and how it would be affected by the differing value degradation curves. Ok, let's get into this. I assumed the needs of an average home user who wants a premium thin and light experience and therefore used the MacBook Air and XPS 13 for this comparison.

 

Here are the values I found for the MacBook and XPS 13:

 

Year:

Model - Launch Price - Used Price in 2017 - Specs

 

2017:

MacBook Air - $1000 - $750 - 900p Display, 128GB SSD, 1.8GHz i5, 8GB LPDDR3 @ 1600MHz

XPS 13 - $1000 - NA - 1080p, 128GB SSD, 7th Gen i5, 8GB DDR3

 

2016:

XPS 13 - $1000 - $700 - 1080p, 128GB SSD, 7th Gen i5, 8GB DDR3

 

2015:

MacBook Air - $1000 - $600 - 900p Display, 128GB SSD, 1.8GHz i5, 8GB LPDDR3 @ 1600MHz

XPS 13 - $1000 - $450 - 1080p, 128GB SSD, i5, 8GB DDR3

 

2014:

MacBook Air - $1000 - $450 - 900p Display, 128GB SSD, 1.8GHz i5, 8GB LPDDR3 @ 1600MHz

XPS 13 - $1000 - $250 - 1080p, 128GB SSD, i5, 8GB DDR3

 

2013:

MacBook Air - $1100 - $400 - 900p Display, 128GB SSD, 1.8GHz i5, 8GB LPDDR3 @ 1600MHz

XPS 13 - $1000 - $200 - 1080p, 128GB SSD, i5, 8GB DDR3

 

2012:

MacBook Air - $1200 - $350 - 900p Display, 128GB SSD, 1.8GHz i5, 8GB LPDDR3 @ 1600MHz

XPS 13 - $1100 - $200 - 1080p, 128GB SSD, i5, 8GB DDR3

 

2011

MacBook Air - $1300 - $300 - 900p Display, 128GB SSD, 1.7GHz i5, 4GB DDR3 @ 1333 MHz

 

2010:

MacBook Air - $1300 - $200 - 900p Display, 128GB SSD, 1.7GHz i5, 4GB DDR3 @ 1333 MHz

 

2009:

MacBook Air - $1800 - 800p Display, 120GB 4200 rpm HDD, 1.86GHz Core 2 Duo, 2GB DDR3 SDRAM @ 1066 MHz, Geforce 9400M w/ 256MB shared SDRAM

 

First of all, I jumped into comparing the "total cost" (I define total cost as the initial price minus the used resale value), of the MacBook Air to the XPS 13.

 

At first glance, you can see that the MacBook Air has a lower total cost at around the 3-5 year old mark were most people sell their devices. However, this graph would lead one to assume that the curve, if it were complete, would look like this:

While the extrapolation looks to be correct, one must realize that the MacBook initial cost is much higher, the earlier the version. We can assume that an equivalent Windows machine at the time, would cost somewhere around the same price as the MacBook Air of that year, while having a bit more processing power. The extrapolation on the other hand, is relying on there being a constant initial cost. Therefore, I would assume that the curve would even out to about the same total cost for both the Windows and Mac machines and that this extrapolation would be incorrect. What we can do here is look at the percent of the initial price being paid.

 

Because the Mac and Windows machines cost about the same during the years I have data for, the graph should be correct. And this is quite interesting. During the years (3-5 years old) where people are most likely to sell their computers, the XPS 13 used price drops massively, leading to a higher percent of the initial cost being paid while the MacBook Air used price seems to remain constant. I would hazard a guess that the high quantities of used XPS 13s (greater number of Windows machines in total) hitting the market at the same time, drives down used prices for several reason. The quantity of XPS 13s lowers the market value, the perception of Windows machines as slower lowers the used value, and the general mistrust of Windows for data and security in the long run, drives people away from used computers. Also, newer computers perform the same and cost less at this point. Now, why does the MacBook Air not lose value as quickly? Here are some of the reasons why: there is a greater cultural trust in Apple devices, even in the used market, Macs are seen as faster than Windows machines, the demand for cheaper than new Macs (from those seeking the OS and UX), overvaluation by sellers, and because there are much smaller generational improvements compared to Windows machines. For whatever reason, Macs degrade in value a lot slower than Windows PCs, and in this case, actually show that a Mac can offer better price to performance in some cases. 

 

I am stunned by this. Pretty much any time you bring up the Mac vs PC argument, a major reason in favor of PC is P2P. Yet the MacBook Air holds better value than the XPS 13. As a P2P enthusiast, who always wants the best bang for my buck, I am thrilled to see that I would not have to feel like I am wasting money on a subpar machine if I buy a Mac to use as thin and light. I am not sure how this holds with other Mac models and would love to see if there is a PC Ultrabook killer in the lot. Even if the used price is a bit greater a percent of the initial cost on another Mac model, it would destroy pretty much anything in it's category.

 

I really want someone like LTT to cover this topic in detail as I don't feel I can do it justice, Also, if one of you decides to take a look at another Mac model or PC, please link it in the comment as I would love to read what you find.

 

If I made any mistakes, just hit me up and I'll correct them. Also, if you can't understand anything I wrote, let me know as I am super tired and am pretty sure I feel asleep on my keyboard a couple times.

 

Thanks for reading!

 

Don't comment, if you are gonna be toxic. You know who you are.

[79wjd]

14 minutes ago, TurbulentWinds said:

Now, why does the MacBook Air not lose value as quickly? Here are some of the reasons why: there is a greater cultural trust in Apple devices, even in the used market, Macs are seen as faster than Windows machines, the demand for cheaper than new Macs (from those seeking the OS and UX), overvaluation by sellers, and because there are much smaller generational improvements compared to Windows machines.

There is also less competition than with Windows laptops as there is one Mac vs. hundreds of Windows laptops. Another factor is that Macs generally aren't discounted as steeply or as frequently. 

[SansVarnic]

Very Interesting. Well written.

One thing though you threw me off with the graphs as they are backwards to me but then I noticed that the year along the bottom is recent to past instead of past to recent (right to left). Lol. 

[Ryujin2003]

23 minutes ago, TurbulentWinds said:

First of all, I jumped into comparing the "total cost" (I define total cost as the initial price minus the used resale value), of the MacBook Air to the XPS 13.

My opinion: The value is subjective. The resale value isn't based on the actual mechanical value of the device, but instead the personal interpretation of material worth. The total cost for my laptop is the full retail price because I will never sell it. I will ride it until it's dead. It's mechanical worth to me is more than material worth.

 

And as @djdwosk97 stated, competition on the used market will drive price as well. More Windows based PC's will not be able to compete with high prices because of the sheer quantity.

Quote

 

Don't comment, if you are gonna be toxic. You know who you are.

That's me...

I really don't like the graphs with time increasing to the right. It's super unnatural. Most languages read left to right, top to bottom. So, unless you are one of the exception languages, time generally increases to the right.... And relating it to math, the X-Axis increases indefinitely from the origin to the right. Just makes it super hard to look at. Also, please label your axes.

[XboxCarsForza]

I think part of the reasons Macs sustain retail value higher are because more people buy used MacBooks, Macs tend to have worse price/performance than PCs so if someone wanted to buy a Mac, it would make sense to buy used.

[TurbulentWinds]

17 hours ago, SansVarnic said:

Very Interesting. Well written.

One thing though you threw me off with the graphs as they are backwards to me but then I noticed that the year along the bottom is recent to past instead of past to recent (right to left). Lol. 

Lol, sorry I just realized that. It was my first time using the new Google Charts, and I really had no clue what I was doing.

[DrMacintosh]

18 hours ago, Ryujin2003 said:

The resale value isn't based on the actual mechanical value of the device, but instead the personal interpretation of material worth.

But that doesnt change reality. 

[TurbulentWinds]

17 hours ago, Ryujin2003 said:

The total cost for my laptop is the full retail price because I will never sell it. I will ride it until it's dead. It's mechanical worth to me is more than material worth.

I see your point here and I didn't really think of that, however, I feel this is still an accurate representation for most people.

17 hours ago, Ryujin2003 said:

That's me...

Lol, no, dude. You make wonderful post and I highly respect your opinion. You don't just go around posting that the human eye can only see 240p, 10 FPS.

18 hours ago, Ryujin2003 said:

I really don't like the graphs with time increasing to the right. It's super unnatural. Most languages read left to right, top to bottom. So, unless you are one of the exception languages, time generally increases to the right....

Sorry, I missed that, first time using Google Charts. I'll fix it soon.

18 hours ago, Ryujin2003 said:

And relating it to math, the X-Axis increases indefinitely from the origin to the right.

Wait, I'm confused here. Can you explain what I need to do to fix this in detail?

18 hours ago, Ryujin2003 said:

Also, please label your axes.

Lol, couldn't figure it out. I'll take another stab at it later.

[dizmo]

Nice post. I think it's worth noting though that OS differences are still present. So someone looking to get a Windows machine is unlikely go to Apple, and vice versa.

[Ryujin2003]

5 minutes ago, TurbulentWinds said:

 

 

Wait, I'm confused here. Can you explain what I need to do to fix this in detail?

Lol, couldn't figure it out. I'll take another stab at it later.

Instead of time increasing to the left, have it increase to the right

Now: 2017 2016 2015 ... 2009

Should read: 2009 ... 2016 2017

[79wjd]

5 minutes ago, dizmo said:

So someone looking to get a Windows machine is unlikely go to Apple, and vice versa.

To some extent anyway. Apple would have to fuck things up pretty badly, and/or Microsoft would have to improve Windows significantly for me to even consider not getting a Mac for my laptop. 

[dizmo]

1 minute ago, djdwosk97 said:

To some extent anyway. Apple would have to fuck things up pretty badly, and/or Microsoft would have to improve Windows significantly for me to even consider not getting a Mac for my laptop. 

And I'm the opposite. Which is my point

[Techicolors]

20 hours ago, TurbulentWinds said:

Now, why does the MacBook Air not lose value as quickly? Here are some of the reasons why: there is a greater cultural trust in Apple devices, even in the used market, Macs are seen as faster than Windows machines, the demand for cheaper than new Macs (from those seeking the OS and UX), overvaluation by sellers, and because there are much smaller generational improvements compared to Windows machines. For whatever reason, Macs degrade in value a lot slower than Windows PCs, and in this case, actually show that a Mac can offer better price to performance in some cases. 

it could also be because MacOS runs best on Apple hardware. i know Hackintosh exists, and Apple doesn't actively care about it to make a big deal, but hackintosh still runs pretty funky 

[Zodiark1593]

6 hours ago, DrMacintosh said:

But that doesnt change reality. 

I agree. And it means I can get older laptop hardware at lower cost to myself, so I'm not complaining.

 

Edit: Linux on a laptop works pretty well btw, so long as I don't need to game away from home.