Path: utzoo!utgpu!news-server.csri.toronto.edu!cs.utexas.edu!swrinde!zaphod.mps.ohio-state.edu!julius.cs.uiuc.edu!apple!atncpc!bruce
From: bruce@atncpc.UUCP (Bruce Henderson)
Newsgroups: comp.sys.next
Subject: Re: Boy, I bet Apple feels silly now...
Summary: Get it straight
Message-ID: <338@atncpc.UUCP>
Date: 26 Sep 90 16:18:09 GMT
References: <1990Sep24.193245.22939@midway.uchicago.edu>
Organization: Ashton Tate NCPC, San Jose, CA.
Lines: 42

In article <1990Sep24.193245.22939@midway.uchicago.edu>, gft_robert@gsbacd.uchicago.edu writes:
> ------------- 
> Um, I hate to intrude upon your fantasies, but maybe you should wake up now. 
> It is _highly_ unlikely that Apple will price their 040 machines that high,
> given that you could purchase a Next for $600-7000 (the $5000 price is a
> misleading price; unless you happen to have a fast server, you'll need to get a
> bigger HD than 105).

Have you actually used on of the "105" machines?  I think not (yes, I am
speaking from first hand experience) because they are quite capeable.
Some people may went a larger hard disk, but the machine runs very well
without it.

> 
> This is the same thing that happened to Next.  Do you think they lowered their
> prices solely because they're nice folk?  Not likely.  They lowered them
> because market pressures (such as Sparcstations, lack of sales, A/UX 2.0, etc.)
> lead them to.  And Apple will almost certainly follow.  To start, I'd look for
> a drop in the IIfx prices, to follow the IIci drop earlier this quarter.  And I
> would _not_ look for 040 machines priced greatly over $10k, if they are even
> that much.

You may be correct.  But If you look at the way that Apple has thier pricing
structure set up, If they were to introduce a ne "King of the Hill" at a 
lower price that thier previous "King", then they would have to move the 
price on much of thier line downward to compensate.  This is not a trivial
mater in the least, mostly due to the fact that the entire dealer network 
will then require monitary compensation for product already in the channel.
(for those of you unfamiliar, this is the common practice before lowering
prices, it helps to keep dealers from getting screwed).  

NeXT did not price these machines for any reason but this:
They want to win.

It has nothing to do with pressure.  I don't think they care about wimpy
Sparc machines at all.  They are going to sell into that niche (scientific/
education) but that is not thier primary thrust anymore.  They are going
for mainstream business.  And Suns are hardly a viable platform for
mainstream businesses.

Bruce Henderson
Ashton Tate NeXTeam