Why isn't Apple's Mac software truly free?

by anonymous on 2013-11-16 14:48:33

Apple has not only recently released a thinner and lighter iPad and faster Mac computers, but also announced something surprising: Apple will provide the new Mac OS X Mavericks operating system software for free. Previously, this system was priced at a high $169, but now people can download and use it for free.

However, technical analysts say that this might not be truly free. Even though Microsoft and other companies may be forced to follow suit, people might end up paying some price for the free Mac OS X operating system software as Apple could correspondingly increase the cost of its hardware and other services.

Craig Federighi, Apple's senior vice president of software development, stated: "Today we are revolutionizing pricing." People refer to Apple's new Mac operating system as Mavericks, which will run faster. When using batteries to handle tasks, the software will strongly control less important tasks. Of course, users are still locked into Apple's own ecosystem. Technical analyst Jeff Kagan said, "It seems that Apple wants to reshape the entire industry economy. On one hand, Apple's actions will make its competitors uneasy. On the other hand, how long will it take for Apple's competitors to catch up with Apple?"

Although this is not the first time Apple has made its operating system freely available, it still symbolizes a change in Apple's strategy. Mac OS was free from 1984 to 1991, and the 7.1 version starting in 1992 began charging $95.

E-commerce consultant Brian Eisenberg said that Apple's decision to offer software for free means that the Apple ecosystem has officially become more important than the operating system. Computer and smartphone companies are all vying to earn big profits by providing technical support to users, making them one-stop shops, from movies to music, books to garden furniture, covering everything. Eisenberg said, "Apple has basically established the idea that there is more value to pursue beyond the operating system. Apple can gain more profit from its entire ecosystem. By letting users experience free services, they will spend more money on Apple products."

Even though users are currently happy about the free operating system, Apple's move to make software free allows Apple to have more pricing flexibility when launching new products in the future. The iPad Air, released on Tuesday, is priced from $499 to $929 depending on the model. Morningstar analyst Brian Colello pointed out, "Apple's strategy of offering free software to users not only enhances user experience but also encourages more people to buy expensive Apple products. However, whether or not the operating system is free, charging is like a gamble. This contrasts sharply with Amazon, which sells tablets near cost price to promote purchases."

In general, Apple's release of a free operating system is indeed a clever marketing move. In recent years, the pricing of Apple's operating systems has been continuously decreasing, from the initial $29 for Snow Leopard 10.6 to $19 for Mountain Lion 10.8 last year, making free access inevitable. He pointed out, "Since users buy Apple devices at high prices, Apple needs to give them some sweet incentives."