davidbrierley@LYNX.NORTHEASTERN.EDU (03/06/89)
Perhaps Laser is using a lower cost in order to profit by volume instead
of profit margin on each model sold. Now that Apple is pushing Macs on the
education market and because IBM is moving in on the education world as well
it appears that Apple can't sell as many II models as before - so it must
increase prices to maintain its profits in order to keep the II line
worthwhile. Another factor could be that Laser is using the lower prices
to introduce itself to the II realm so that it can take it over when (if?)
it releases its (faster?) GS compatible.
David R. Brierley
Internet: davidbrierley@lynx.northeastern.eduSEWALL@UCONNVM.BITNET (Murph Sewall) (03/07/89)
> Perhaps Laser is using a lower cost in order to profit by volume instead >of profit margin on each model sold. Now that Apple is pushing Macs on the It is usual or a LATE ENTRY into a mature market to compete on price (unless it has some really innovative feature(s) to offer). Laser makes a profit margin on each unit (smaller than Apple's but bigger than zero), but they "profit on volume" only to the extent that a significant share of a substantial market can be achieved. >education market and because IBM is moving in on the education world as well >it appears that Apple can't sell as many II models as before - so it must >increase prices to maintain its profits in order to keep the II line Fortunately, I think even Apple has figured out that is sales are declining (especially when the decline is due to price competition :-) that raising prices will only cause sales to fall faster. The only occasion on which raising prices for a mature product will sustain or increase profits is one in which existing prices are too low to begin with, and Apple has NEVER been accused of pricing too low!!! >worthwhile. Another factor could be that Laser is using the lower prices >to introduce itself to the II realm so that it can take it over when (if?) >it releases its (faster?) GS compatible. I'll believe a IIgs compatible when I see one. So far I haven't heard a whisper of a credible rumor (some wishful thinking is about it). IF such a clone does appear, you can bet it'll have a price tag substantially below Apple's. Only Compaq has been able to sustain a strategy of cloning at higher prices, and they've done it by offering SIGNIFICANTLY greater functionality. So far, I haven't heard that Western Design has a version of the 65816 materially faster than a IIgs with a Transwarp-GS, so I don't see Laser producing a clone which would warrant a premium price (maybe a lap GS with MS-DOS compatibility?). Murph Sewall Vaporware? ---> [Gary Larson returns 1/1/90] Prof. of Marketing Sewall@UConnVM.BITNET Business School sewall%uconnvm.bitnet@mitvma.mit.edu [INTERNET] U of Connecticut {psuvax1 or mcvax }!UCONNVM.BITNET!SEWALL [UUCP] -+- I don't speak for my employer, though I frequently wish that I could (subject to change without notice; void where prohibited) According to the American Facsimile Association, more than half the calls from Japan to the U.S. are fax calls. FAX it to me at: 1-203-486-5246