[comp.sys.next] NeXT cost on the Slab - re Low End Next

esink@turia.dit.upm.es (04/05/91)

My initial reaction to the whole low end NeXT idea is : how much
more low end can NeXT tolerate ?  This is related to my next
NeXT question, which is :

Anybody have any educated guesses concerning the COST of the
NeXTStation ?  Add up the prices of the components.  What
kind of a profit margin are they making here ?  It looks to
me like a real small one.  I was planning on posting my
estimates, but I decided not to - given that I have not yet
seen a Slab, nor do I have any idea what the cost of things
like a DSP chip or UNIX licensing fees are.  Could someone
post a list of major components of the NeXTStation, and guess
what the thing costs them to make ?

Anyway, sure a Low End NeXT would be great.  I want one for
my home.  I'm just not sure what they could cut out to make
it cheaper.  At home, I don't need the networking, but like
someone else mentioned, it would probably be foolish for them
to remove it.  Less RAM ?  Useless, RAM is cheap and the
Slab barely has enough as it is.  68030 ?  Like someone else
said, how much less is that, really ?  Smaller screen ? There's
a possibility.  Less software ? Sure, cut WriteNow (I would
prefer that they did not, myself...), but what else is there
that they could cut out ?  Licensing fees on TeX, GCC, and 
Emacs ?!?  Cheaper keyboard ? I doubt it.  Cut their profit
margin ? See above.  Smaller disk ?  Foolish.  Cut the floppy ?
More foolish.  I don't think I've seen any reasonable
suggestions which actually LOWER the price significantly.
I'm not really complaining, because I don't have any better
suggestions.  I'm just not sure I see that a lowER end NeXT
is all that feasible right now.

Eric


  
Eric W. Sink                     | Putting the phrase      |All opinions
Departamento de Telematica       | "Frequently Asked"      |are mine and
Universidad Politecnica de Madrid| in your kill file is    |not necessarily
esink@turia.dit.upm.es           | not recommended.        |yours.

jchin@van-bc.wimsey.bc.ca (Joseph Chin) (04/07/91)

If anyone want a low end UNIX box, they can go and get a 386/486 PC and run
SCO or Interactive UNIX on it. But let's NOT compromise my lovely NeXT!!!

By producing a low RAM, slow processor, non-Ethernet NeXT computer, you will
be lowering the lowest common denominator for NeXT computers! PCs and
(to a certain degree) Macs software have been plagued by hardware with low
common denominators, lets spare our NeXT from that.

The NeXTstation is a very reasonably priced entry-level system. It has and will
hold its own in its target market.

:-) Joe
jchin@van-bc.wimsey.bc.ca

-- 
 **************************************************************
 * "Kill the body and the head will die" (Hunter S. Thompson) *
 *    NeXT --> The ultimate electronic publishing platform!   *
 ********** Joseph Chin --> jchin@van-bc.wimsey.bc.ca *********

ed_l_patriquin@cup.portal.com (04/09/91)

Typical margins in the computer retail channel are ~45%, with few 
notable exceptions (the Mac Classic).  That would mean that NeXT
was making $2747 for each Slab (NeXTstation).  NeXT would need to
have a gross margin of at least 35% to be profitable, which would
mean that the manufacturing cost, not the parts cost, of a Slab 
must be less than $1785 or they are losing money.

Sounds like they are doing one heck of a job at cost reduction or 
they are losing money.

Ed Patriquin