[comp.sys.mac.misc] Loss of Mac's 20%... the Mac's future and market forces

minich@d.cs.okstate.edu (Robert Minich) (07/08/90)

Me:
|>  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.
 
by doner@aerospace.aero.org (John Doner):
| 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?

  I didn't make myself clear. What I'd like to see is Apple scrape it's
teeth severely for at least a little while in order to create more
movement and thus market share. As things stand, Apple is losing ground.
That is very very bad. System 7 will do a lot for Apple's image (most of
it has been bad for now, but its release may send a different message.)
Lowering prices significantly would too. Apple won't fold by eating a
bit of it's margins on the lower end. (Plus and SE) The IIfx is actually
an example of rather agressive pricing I'd like to see more of. How many
PCs do you see with that kind of inovative architecture oozing raw,
lustful power? The few that do are very close in cost. Unfortunately,
the IIfx will probably not do very much for market share.
  The most important reason for market share is for long term survival.
The Mac doesn't exist and thrive because of its price. There are
cheaper. It soon won't stand out (for many) for its interface. There's
Windows. So what's to differentiate it? Well, "the little things", like
the same ones that mean the difference between loving your car and
hating it. And the software you can buy. Very soon, neato gee whiz
programs will be coming out for Windows because of the incredible size
of the PC market. More developers there means more innovations there,
assuming all things between platforms being equal. (Yeah, I know...) It
may come to pass that the PC will again be innovative. That is the real
threat to Macdom. If Apple makes Macs competetive with sticker prices
for PCs, lots and lots of Macs will be sold. Ever hear "God, I'd love
one but I just can't afford that." I hear it way too often, and **I**
feel guilty. If only I could say "Not anymore! Check this out... you get
a real Mac for the price of a PC!" [Sounds like a certain clone maker's
ad. Ick.] Then there are the things PCs don't have...
  So, pricing Macs competetively with PC hardware (not necessarily
equal, just "in the neighborhood") would be A Good Thing in the long
run. Now as for the argument that this would kill Apple, I disagree. You
have lots of profit margin to play with in a Mac. The SE is pretty much
paid for, mature technology. We should all try to move to 68030
machines, anyway. (Likewise, I'd recommend to anyone buying a PC to get
nothing less than a 386sx for long term reasons.)  If Apple's market
share were growing instead of declining, the world would be a safer
place. Cut prices on the machines and see what happens. TRUST ME. 

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-- 
| _    /| | 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.