kuo@boulder.Colorado.EDU (Andy Y.A. Kuo) (07/08/90)
In article <77516@aerospace.AERO.ORG> doner@spot.UUCP (John Doner) writes: > >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? Several years ago, PC makers expanded the installation base of the PCs by reducing the profit margin. Now what? The overall PC market is far greater than the Mac market. Apple doesn't just make SEs and people still will buy the portable, the IIfx and A/UX..etc even if the SE is cheap. And people should actually be even more eagerly buing the profit generating Macs if they are "hooked" early when they start entering the computing world. Selling a SE at a very low profit margin but at very high volume can generate more profits. Also, the SE doesn't need any more R&D, it is a mature product already. The revenue and resource that are generated from the matured products and the current high enders can and should be devoted to the R&D of the future. So Apple can still keep up the R&D. And we will still be seeing powerful new products from Apple. Remember, today's IIfx will act like tomorrow's SE. Don't be confused. "lower profit margin" only makes the Macs more affordable and can only increase the R&D force. I care about it now and will care about the Mac market in the future if Apple can really successfully expand the market share. After all, one can learn something from the PCs and the once dominating AppleIIs. Andy Y.A. Kuo UUCP: ...!boulder!kuo CU Boulder Dept. of Computer Science kuo@boulder.Colorado.EDU