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From: gft_robert@gsbacd.uchicago.edu
Newsgroups: comp.sys.next
Subject: Re: Mac is software - why not on NeXT?
Message-ID: <1990Nov6.230749.10160@midway.uchicago.edu>
Date: 6 Nov 90 22:58:54 GMT
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Distribution: comp
Organization: University of Chicago Graduate School of Business
Lines: 51

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In article <5974@mace.cc.purdue.edu>, asd@mace.cc.purdue.edu (Kareth) writes...
 
>In <1990Nov6.160855.864@vax5.cit.cornell.edu> q4kx@vax5.cit.cornell.edu (Joel Sumner) writes:
> 
>>Simple, because then Apple would lose a HUGE market share.  Look at the IBM
> 
>This is true.  They might even be put out of business if they didn't
>do something about their prices
> 
>>clone market.  IBM allowed other people to manufacture the BIOS and other
>>components of IBM systems, so people did the obvious thing, buy the separate
>>parts and make their own.  IBM's share of the PC market fell something like 40%
> 
>#include "std/disclaimer"
> 
>Yes, but what we must consider also is how big that market is.  Would
>the numbers of IBM's being sold be what it is now if they hadn't let
>others manufacture their own?  If IBM had done the same as Apple does,
>would they be selling as many machines as they are now?  I doubt it
>very much.  All the competition has engineered a dramatic decrease in
>prices for PC's, along with a very quickly increasing abilities.  If
>IBM had been left to do it, you'd see exactly what you see at Apple,
>very slowly maturing machines with HUGE prices on their heads.


HUGE prices?  Compare Apple to IBM (not clones) prices.  Apple's prices are no
"HUGER" than IBM's (or Compaq's).  It is not clear to me that the cloning of
IBM PC's has led to particularly lower prices at IBM.  Rather, you can buy an
IBM clone for less than an IBM.

Remember: we're talking about the effect of cloning on the original
manufacturer.  As for "slowly maturing machines", do you call the PS/2 line a
leap forward in innovation?  I don't.  

Also, as far as I know, IBM did not let "others manufacture their own".  Rather
somebody (Phoenix?) cracked the ROM BIOS.

In any case IBM has made most of their money from mainframes/workstations, not
PC's.  Thus they could afford to lose market share in the PC market.  Apple
cannot: all they sell are PC's.  Of course there was the rumor earlier this
year that Apple was going to buy Cray. :->  Hey, as Judy Tenuta says: "it
could happen!". :->

Robert

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= gft_robert@gsbacd.uchicago.edu * generic disclaimer: * "It's more fun to =
=            		         * all my opinions are *  compute"         =
=                                * mine                *  -Kraftwerk       =
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