johnc@ms.uky.edu (John Coppinger) (05/07/91)
An article in the Wall Street Journal today said IBM plans to cut their RS/6000 prices from 12% to 60%. It also says analysts expect Sun and DEC to follow suit. If NeXT's price restructuring does not move them down the price scale, then it could be a major nail in their coffin. Let's all hope that this restructuring is motivated by foresight, and not greed. -- -- John Coppinger "You'll find that your left cuff link -- -- University of Kentucky will be communicating with your right -- -- johnc@s.ms.uky.edu cuff link via satellite" -- -- johnc@graphlab.cc.uky.edu [NeXT] -- Nicholas Negroponte --
thomsen@spf.trw.com (Mark R. Thomsen) (05/09/91)
In article <1991May7.141318.14673@ms.uky.edu> johnc@ms.uky.edu (John Coppinger) writes: > > An article in the Wall Street Journal today said IBM plans to cut their > RS/6000 prices from 12% to 60%. It also says analysts expect Sun and > DEC to follow suit. If NeXT's price restructuring does not move them > down the price scale, then it could be a major nail in their coffin. > Let's all hope that this restructuring is motivated by foresight, and > not greed. > Perhaps the exponential increase in NeXT sales and their bang-for-buck edge has something to do with it. :) You don't become a multi-billion $ company by ignoring your competition, potential and current. At least not all the time. IBM, DEC, and Sun may be reacting. IBM has so many problems with RS/6000 that I couldn't see buying one unless it was so cheap I thought the price was a joke. NeXT's earlier price restructuring (around late 1989) was done in a timely (when the price should go down based on parts costs that you and I can check on) way. They said they are using expensive new technology (e.g., 68040) and as costs come down they lower prices. I anticipate the price lowering late this year for NeXTstations. Mark R. Thomsen
edwardm@hpcuhe.cup.hp.com (Edward McClanahan) (05/15/91)
Mark R. Thomsen proposes: > In article <1991May7.141318.14673@ms.uky.edu> johnc@ms.uky.edu > (John Coppinger) writes: > > > > An article in the Wall Street Journal today said IBM plans to cut their > > RS/6000 prices from 12% to 60%. It also says analysts expect Sun and > > DEC to follow suit. If NeXT's price restructuring does not move them > > down the price scale, then it could be a major nail in their coffin. > > Let's all hope that this restructuring is motivated by foresight, and > > not greed. > > > Perhaps the exponential increase in NeXT sales and their bang-for-buck > edge has something to do with it. :) > > You don't become a multi-billion $ company by ignoring your competition, > potential and current. At least not all the time. IBM, DEC, and Sun may > be reacting. IBM has so many problems with RS/6000 that I couldn't see > buying one unless it was so cheap I thought the price was a joke. Understanding that I work for HP, you can take the following as somewhat biased, but... At the end of March, HP announced their 9000/700 line of PA-RISC workstations. The price/performance ratio (as well as the raw performance numbers) were a, shall we say, a shock to the status quo... I believe the 720 is around 50 (no, that's not a typo) SpecMark's starting at around $12K. It is probable that the price slashing at IBM is in direct response to the HP series 700 announcement. Niether HP nor IBM really competes at the workstation low end with their (our) RISC offerings. Still, NeXT would be taking on these high-powered workstations if they increase their prices AT ALL... I'd expect an even more drastic price reduction from Sun except for their huge installed base and broad application availability... *** end biased analysis *** =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= Edward McClanahan Hewlett Packard Company -or- edwardm@cup.hp.com Mail Stop 42UN 11000 Wolfe Road Phone: (480)447-5651 Cupertino, CA 95014 Fax: (408)447-5039