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- Path: sparky!uunet!pipex!ibmpcug!mantis!mathew
- From: mathew <mathew@mantis.co.uk>
- Newsgroups: comp.sys.mac.misc
- Subject: Re: Powerbook 100 (was Re: Powerbook, Price Club, pricing)
- Message-ID: <3o4RoB27w165w@mantis.co.uk>
- Date: Fri, 31 Jul 92 14:37:25 BST
- References: <1992Jul30.133517.11956@oswego.Oswego.EDU>
- Distribution: world
- Organization: Mantis Consultants, Cambridge. UK.
- Lines: 55
-
- ostroff@Oswego.EDU (Boyd Ostroff) writes:
- > In article <9uBooB23w165w@mantis.co.uk> mathew@mantis.co.uk (mathew) writes:
- > >If the machine can currently be sold at a profit for #900, the inference is
- > >that the month before when I bought it for #1400 someone made #500 of pure
- > >profit, no?
- >
- > So what? They sold the machine at whatever the market would bear.
-
- Yes, it's just that that same argument was used to justify Apple UK's old
- pricing policy. Demand outstripped supply, so they used to increase the
- prices of Macintosh computers until the number they manufactured matched the
- number purchased.
-
- British Rail have a similar pricing policy. If trains are too crowded, they
- increase the price of tickets until enough passengers are driven away
- (literally) and the trains get less crowded.
-
- > Nobody forced anyone to buy a $1400 computer.
-
- Nevertheless, someone who buys something and then finds out a month later
- that it's now being sold at half the price and still at a profit is liable to
- be a little bit pissed off. When the same company introduces a new product,
- he is likely to decide that it's better to wait six months or a year until
- the initial 100% profit has been cut to a more reasonable level.
-
- > >If people wait around six months before touching Newton, it could
- > >kill the product.
- >
- > Again, what's your point? Are you implying that people have a "duty" to
- > buy new machines so Apple won't go broke?
-
- No, I'm saying that new machines have to get market share quickly, or else
- they die. Look at the NeXT -- a fabulous machine, but few people bought it.
- Hence few people developed software for it. Hence few people buy it.
-
- Most people will have to be convinced before they'll spend money on Newton.
- The people who won't have to be convinced are portable computing junkies, so
- they could make up perhaps 90% of Newton owners in the first six months. If
- a sizable number of those people are put off from buying in the first six
- months, Newton's momentum (ho ho) will be hit quite badly.
-
- Put it this way. When I first heard about Newton, I thought "Wow! Start
- saving now, and buy it as soon as it comes out!". But now, I'm thinking "Hmm.
- Probably when they first sell it, it'll have a profit markup of more than
- 100%, so when it's launched I'll wait six months before deciding whether to
- buy one." So Apple have already lost one potential customer, before the
- product has even been released.
-
-
- mathew
- --
- "Even the most bizarre of the unions (probably that between a cat's gall
- stone and a single note 'G' from CNN's ident theme) managed to convey a
- sense of rampant impropriety." -- 'Fortran Five', Simon G. Lawrence Leonard
-
-