Path: utzoo!utgpu!news-server.csri.toronto.edu!cs.utexas.edu!usc!snorkelwacker!apple!north
From: north@Apple.COM (Don North)
Newsgroups: comp.sys.next
Subject: Re: Why the big price jump?
Message-ID: <45044@apple.Apple.COM>
Date: 22 Sep 90 01:02:01 GMT
References: <1990Sep21.034515.29804@wam.umd.edu> <3142@uakari.primate.wisc.edu>
Organization: Apple Computer, Inc.
Lines: 15

In article <3142@uakari.primate.wisc.edu> bin@primate.wisc.edu writes:
>From article <1990Sep21.034515.29804@wam.umd.edu>, by rgc@wam.umd.edu (Ross Garrett Cutler):
>>    It could that NeXT is really discounting their low end computer (the
>> 105 MB version), hoping to make more for the larger systems.  But I thought
>
>This is unsurprising and is a routine sales strategy that cuts across
>industries:  give the basic system away and make the money on the extras.
>The auto industry comes to mind.  Options packages are often worse pocketbook
>gougers than the basic car itself.

It should be obvious why NeXT is pricing their new systems, especially at
the low end, where they are - they are in SURVIVAL MODE.  Believe me, when
you analyze the COST (NOT end-user PRICE)  of the components going into
these boxes, they are selling them basically at break-even.  The ONLY way
that NeXT is going to make it to 1995 is to build market share NOW.