This notion of an “Apple Tax” does raise an interesting point. When considering the purchase a new system one should look beyond the initial costs to figure out the true value. I wanted to look at the projects costs of purchasing these two laptops over 5 years. Instead of using the metrics in the whitepaper or assumptions of an average user, I wanted to compare both systems based on my needs. I broke these down into two parts, first the initial cost (the system cost and software I would require to accomplish all of the things I want to), and then the maintenance costs over an additional 4 years of each system.

Initial Costs

To determine the initial cost, I used Dell and Apple’s online store to configure systems based on my needs and to ensure each was similar to the other. These configurations may not reflect the “average” computer user. I’m a web designer, DJ, and will require software that fits within these needs. Some items were excluded from this list, such as illuminated keyboards or free software provided on the system. One important item I’m excluding is the initial cost of security software (anti-virus, firewall, system protection), Dell includes a free one-year subscription to security software of your choice. In my case I would be choosing the Norton Internet Security package. These prices do not reflect any limited-time promotional discounts (such as 20% off a system price during a certain period), but do reflect discounts provided when purchasing a new system.

Dell Studio 16 XPS

Apple MacBook Pro 17”

The Dell Studio XPS 16 is cheaper by $466.01, this was not unexpected. Macs are generally costlier machines (the Mac is $1,000+ more than the Dell), but with the additional upgrades needed on the Dell the margin is a lot narrower than I expected.

For a further analysis adjustments to the software packages can be made. Office, iWorks and CS4, could be replaced by free software such as Open Office and GIMP. When these items are removed, the price difference increases to $596.01 (an increase of $130 in savings).

Maintenance Cost

During the lifespan of a system there are costs associated to its maintenance; this includes purchasing new equipment, updating software and new operating systems. As this comparison is based on my current needs, some typical items are neglected, such as such as a wireless router (I already have a Draft-N), printers, UBS drives, CD’s and additional wires required for new hardware or specific tasks. The maintenance cost also reflects the notion that Mac’s are safer than Windows systems. Mac’s are less secure (due to the lack of anti-protection software), they are safer due to the lack of malware targeted for Mac. The use of a security software package could benefit Mac users and make them safer but they are pretty much a requirement for any Windows system.

I’m also making several assumptions surrounding major updates to Operating systems, and productivity software. Adding upgrades to the operating system (Windows, OSX) and productivity software (Office, iLife, iWork) to this comparison is necessary to determine the long term costs, although none of this software has a confirmed release date or price. My projections are based on announcements and trends of previous releases.

Dell Studio 16 XPS

Apple MacBook Pro 17”

The anti-virus package I chose to use as a benchmark was Norton’s Internet Security Upgrade and Renewal offerings, which is $60 for its yearly update. Operating system upgrades are based on previous operating systems costs, and timelines. I’m expecting by 2010 both “Snow Leopard” and Windows 7 would be released. I also assume the need to increase my RAM and would purchase an external hard drive and increase the memory on each system to the maximum capacity. Based on these requirements alone, there is a $412.90 price increase in maintenance for the Dell.

Tale of the Tape

Having compared both the maintenance and the initial cost of both systems there are some major differences. The cost of the Studio XPS 16 is initially less, it increases faster over time. There’s less flexibility to cut items from my budget, with a Windows system you NEED protection software. Even if I were to exclude RAM and operating system upgrades, the Dell would still cost more to maintain over time.

The MacBook Pro on the other hand has an initial cost upfront, but overtime things are more manageable. Even without software updates, I am not stuck with subscription updates for protection software.

Dell Studio 16 XPS

Apple MacBook Pro 17”

In the end, the Dell costs $105.84 more than the MacBook Pro. While this isn’t a huge difference, it does address the notion of an Apple Tax. It’s far less than the $3,367 savings Microsoft indicates would be had by purchasing a Windows systems. Over time, by owning a Mac I would be saving money.

Let’s put things in prospective, I’m not the average user; the average person isn’t purchasing a copy of CS4 or audio streaming software, they may not even upgrade their operating system, production software or increase the amount of RAM on their laptop. Regardless, when looking at the individual costs of upgrades and system maintenance, the initial savings by purchasing a Dell are erased. This examples demonstrates there’s an indication of a Windows Tax, due to the need of items such as anti-virus software.

Additional Thoughts

There are some gaps in my analysis, especially concerning upgrades made to both the MacBook and the Studio XPS 16 at the time of purchase. These upgrades were made to compare similar system configurations, thus attempting to a level field of comparison. Someone can argue that these upgrades aren’t necessary (such as the Vista Ultimate). However this analysis is based on my needs and the things I feel are important, without them they may be costlier in the future to perform and would sustain a 5 year life cycle. At some point the cost cutting for a system becomes just that, the cheaper the system the cheaper the performance becomes.

I do not work for Apple or Windows, and not affiliated with either system. I’m a Mac and PC person and weighing between the purchase of a Mac or a PC. What do you think of my comparison? Am I missing something, forgot to include a feature? Overestimating a cost?

It’s interesting to be purchasing a laptop in this market. Apple is increasing it’s market share and this has been scaring Microsoft, it shows in their recent "I’m a PC" ads featuring "regular people" all purchasing new laptops under $1,500. Advertisements are nice but they do not sway my opinion. Neither does Lauren or Giampaolo (see video after the jump). "This is so sexy, but Macs to me are about aesthetics more than they are about the computing power," Giampaolo says in the new advertisement, and ends up choosing an HP (actually a HP HDX). Prince McLean (Apple Insider) debunks many of the myths presented in the new advertisement by comparing the computer Giampaolo buys and the Mac he was considering. Even with this comparison, PC’s are generally cheaper than Macs, an argument that trumps a lot of reasoning in hard economic times. So how do you choose?

It’s about the features baby!

The decision is going to come down to features. Although I’m definitely spending more than $1,500 on a new computer; the system is going to support a lot of my needs. I need a system that can handle a lot of heavy duty tasks, from web designing and programming to DJ’ing and music editing, to new tools to help feed my social media habits! While software is a concern, a majority of the software I use exists on both Mac’s and PC’s. I need a system that will last for more than a year or two. Mac seems to have PC’s beat in this arena, as much of their offerings are tied into the system such as the iSight camera and included software of iLife. For less than a Mac, I could get a Dell Studio XPS 16 with many features that are similar to the MacBook for less with a larger hard drive.

Dude! You’re getting a…

At this point I’m swaying between both systems. I even asked my friends to help sway my opinion, but they haven’t been helpful. Most of them say there isn’t a difference between Mac and PC’s (where’s peer pressure when you need it?) The MacBook’s are sexy, because they provide a lot of features, computing power and ability. I believe the Mac OS is a better operating system than XP or Vista. However PC’s are cheaper, and may add more value for your dollar and they do come very close. This is a tough choice, I wish there was a way to compare both systems for a month each, and then compare my computing life with each one (if there is a way, I would do it!)

My decision is going to require a deeper investigation.