[comp.sys.mac.misc] Loss of Mac's 20% over Windows 3.0 : The TRUTH

minich@d.cs.okstate.edu (Robert Minich) (07/03/90)

  It has been largely ignored in the on going MCIBTYC junk flying
around, but Win 3 _is_ in fact a great threat to the Mac, but not at all
necessarily based on its merits. If we learn nothing else about
technology and the bleeding edge, it is that perception is much much
more important to success than technical merits. (Aside: this also
applies to a GUI's "feel".) Because there will most certainly be many
more PC bigots saying Windows is >= the Mac than the other way around,
it is very likely that Windows will be bought up more readily. No matter
which is better, Win 3 is definitely (IMHO) affecting Apple, mainly to
start eating margins since PC's are now _perceived_ [whether or not this
is true] as being a reasonable equivalent to the Mac for less $$$. 
  I personally think it is in Apple's best interests to come as close to
giving away Macs as is possible to increase the installed base. In the
long run, this would be very beneficial. (Look what it did for something
as icky as DOS and the 8086! [or is it 8088?])  I also don't think
Windows is at all any sort of successor to the Mac. It is at best on
a parallel. Now OS/2 is more interesting, yet still infintile. The
biggest threat I see to OS/2 is Windows, which will only serve to hamper
efforts to make the switch. But then people perceive certain things
there that i won't even start to get into.


-- 
| _    /| | Robert Minich             |Q: Why is the food so lousy, and 
| \'o.O'  | Oklahoma State University |the service so bad? Time traveler:
| =(___)= | minich@d.cs.okstate.edu   |A:The waiters know in advance what 
|    U    | - Bill sez "Ackphtth"     |kind of tip they'll be getting.

doner@aerospace.aero.org (John Doner) (07/07/90)

In article <1990Jul3.113921.1299@d.cs.okstate.edu> minich@d.cs.okstate.edu (Robert Minich) writes:
>  I personally think it is in Apple's best interests to come as close to
>giving away Macs as is possible to increase the installed base. In the
>long run, this would be very beneficial.

Do that, and they won't be around for the long run, or if they are, we won't
care.  The money for all that R & D, developing and improving user interfaces,
innovative software like Hypercard, etc., let alone the hardware, has to come
from somewhere.  The only way Apple could sell computers at PC-clone prices
would be to give up its future; they could lay off the research staff, and
start pumping out lots of cheap variations on the SE.  This would expand
market share for a while.  Then what?

derek@leah.Albany.Edu (Derek L. / MacLover) (07/07/90)

In article <77516@aerospace.AERO.ORG>, doner@spot.UUCP (John Doner) 
 spilled his guts, writing:
>In article <1990Jul3.113921.1299@d.cs.okstate.edu> minich@d.cs.okstate.edu
 (Robert Minich) writes:
>>  I personally think it is in Apple's best interests to come as close to
>>giving away Macs as is possible to increase the installed base. In the
>>long run, this would be very beneficial.
>Do that, and they won't be around for the long run, or if they are, we won't
>care.  The money for all that R & D, developing and improving user interfaces,
>innovative software like Hypercard, etc., let alone the hardware, has to come
>from somewhere.  The only way Apple could sell computers at PC-clone prices
>would be to give up its future; they could lay off the research staff, and
>start pumping out lots of cheap variations on the SE.  This would expand
>market share for a while.  Then what?

	Well, first of all I don't think selling a low-end machine would
hurt either their high-end sales or their profit margin.  And even if major
across-the-board price cuts aren't forthcoming, they could concentrate on
selling at much lower prices to certain markets:  they should REALLY attack
the higher-education market much more strongly than they are.  A campus rep
is something that is very missed -- going to a dealer with questions is a
big mistake, and I think it loses more sales than it gains (especially OUR
dealer!  Argh!).  I'll just use one example to illustrate my point:  we've
only had an on-campus (student) Amiga rep for a month or so, and I'd say
he's worked out more than a dozen deals.  This is part-time work only, too.
Amigas are, of course, more competatively priced (and what are they
competing with? -- Macs), but even so it could make a real difference.

	Ahh, I'm no corporate marketing strategist...

						Derek L.
-- 
+ +   One Mac is worth exactly 2.317 PCs (based on current price indices)   + +
	Disclaimer:  I was asleep.	---}=-------------------------`
++    All the busy little creatures / Chasing out their destinies --Peart    ++

drd@siia.mv.com (David Dick) (07/11/90)

In <77516@aerospace.AERO.ORG> doner@aerospace.aero.org (John Doner) writes:

>In article <1990Jul3.113921.1299@d.cs.okstate.edu> minich@d.cs.okstate.edu (Robert Minich) writes:
>>  I personally think it is in Apple's best interests to come as close to
>>giving away Macs as is possible to increase the installed base. In the
>>long run, this would be very beneficial.

>Do that, and they won't be around for the long run, or if they are, we won't
>care.  The money for all that R & D, developing and improving user interfaces,
>innovative software like Hypercard, etc., let alone the hardware, has to come
>from somewhere.  The only way Apple could sell computers at PC-clone prices
>would be to give up its future; they could lay off the research staff, and
>start pumping out lots of cheap variations on the SE.  This would expand
>market share for a while.  Then what?

Japanese companies seem to have been doing just fine concentrating on 
market share instead of taking the immediate profits.  Do they
"give up [their] future" when they do this?  I don't think so.

David Dick
Software Innovations, Inc. [the Software Moving Company (sm)]

russotto@eng.umd.edu (Matthew T. Russotto) (07/11/90)

In article <1990Jul10.184527.4259@siia.mv.com> drd@siia.mv.com (David Dick) writes:
>In <77516@aerospace.AERO.ORG> doner@aerospace.aero.org (John Doner) writes:
>
>>In article <1990Jul3.113921.1299@d.cs.okstate.edu> minich@d.cs.okstate.edu (Robert Minich) writes:
>>>  I personally think it is in Apple's best interests to come as close to
>>>giving away Macs as is possible to increase the installed base. In the
>>>long run, this would be very beneficial.
>
>>Do that, and they won't be around for the long run, or if they are, we won't
>>care.  The money for all that R & D, developing and improving user interfaces,
>>innovative software like Hypercard, etc., let alone the hardware, has to come
>>from somewhere.  The only way Apple could sell computers at PC-clone prices
>>would be to give up its future; they could lay off the research staff, and
>>start pumping out lots of cheap variations on the SE.  This would expand
>>market share for a while.  Then what?
>
>Japanese companies seem to have been doing just fine concentrating on 
>market share instead of taking the immediate profits.  Do they
>"give up [their] future" when they do this?  I don't think so.
>
How many Japanese microcomputer companies (besides clone-makers, which are
a different animal) are there?  What is their market share, relative to
Apple, IBM, and Compaq.

Sure, Apple could turn into a clone-maker-- I doubt many of Apple's customers
or shareholders want that, though.
--
Matthew T. Russotto	russotto@eng.umd.edu	russotto@wam.umd.edu
][, ][+, ///, ///+, //e, //c, IIGS, //c+ --- Any questions?
		Hey!  Bush has NO LIPS!

drd@siia.mv.com (David Dick) (07/12/90)

In <1990Jul11.133528.18467@eng.umd.edu> russotto@eng.umd.edu (Matthew T. Russotto) writes:

>In article <1990Jul10.184527.4259@siia.mv.com> drd@siia.mv.com (David Dick) writes:

>>Japanese companies seem to have been doing just fine concentrating on 
>>market share instead of taking the immediate profits.  Do they
>>"give up [their] future" when they do this?  I don't think so.
>>
>How many Japanese microcomputer companies (besides clone-makers, which are
>a different animal) are there?  What is their market share, relative to
>Apple, IBM, and Compaq.

Japanese companies are not dominant in the computer (personal or otherwise)
market here, but I bet you can think of some other markets they're in.

How about the car market?  And if you think they're just "clone-makers"
how about the consumer electronics market?   The point is that it is
perfectly possible to trade off current profits for market share
and still be innovative and maintain a long-term presence in a market.

It may be a valid business decision for Apple to forego market share
in exchange for current profits, but saying that it is mandatory
in order to stay in the market for the long term doesn't wash with me.
There are just too many counter-examples.

David Dick
Software Innovations, Inc. [the Software Moving Company (sm)]