Path: utzoo!utgpu!news-server.csri.toronto.edu!cs.utexas.edu!uwm.edu!linac!mp.cs.niu.edu!ux1.cso.uiuc.edu!m.cs.uiuc.edu!gillies
From: gillies@m.cs.uiuc.edu (Don Gillies)
Newsgroups: comp.sys.mac.misc
Subject: Re: Apple Computer wins ruling against 'Windows'
Message-ID: <1991Mar21.011318.15046@m.cs.uiuc.edu>
Date: 21 Mar 91 01:13:18 GMT
References: <1991Mar15.101202.1@csc.anu.edu.au> <67830001@hpcupt1.cup.hp.com>
Organization: University of Illinois, Dept. of Comp. Sci., Urbana, IL
Lines: 43

jcav@quads.uchicago.edu (john  cavallino) writes:

>Apple lowered its prices and introduced less costly models because it was
>LOSING MARKET SHARE.  Period.  This slide began long before Windows 3 was
>released.  It also appears to have been reversed.  I've read recent
>statements from industry analysts along the lines of "...astonishing
>rebound...", "...complete turnaround...", etc., concerning Apple's recent
>sales.  I think they were +50% in fourth quarter '90.

This is really a dumb statement.  You really misunderstood in three
different ways --

  (1) Apple's suit is about windows 2.03, filed in 1988.  This suit
      is quite old.  Two years is a one product generation in the 
      computer industry.
  (2) I said people could thank Microsoft for the Apple price
      reductions over the last 12 months to existing models (including
      just one week ago).  Every old apple CPU has been marked down in price.
  (3) You have to be willing to follow through in your thinking -- why
      was Apple losing market share?  It's not really because their hardware 
      is way overpriced (as much as 100% markup until recently), but
      because people have a perception, true or false, that they can get a
      mac-like environment from windows.  Just go into any computer store
      and walk up to any color machine.  What is it running?  The snazziest
      applications that are available under ms-windows.

Frankly, microsoft is keeping Apple honest by chipping away at their
windowing advantage, piece by piece.  So what if it's an inferior
ripoff.  Over the past 2 years it's come close enough to toast Apple's
sales.  In response Apple has been forced to reduce margins to < 50%
MARKUP on several models (according to some trade rags).  Of course
Apple's sales will jump if they start to compete on price.  Of course
you can thank Microsoft for firing the first volley -- windows 2.03.


Don Gillies	     |  University of Illinois at Urbana-Champaign
gillies@cs.uiuc.edu  |  Digital Computer Lab, 1304 W. Springfield, Urbana IL
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"UGH!  WAR! ... What is it GOOD FOR?  ABSOLUTELY NOTHING!"  
	- the song "WAR" by Edwin Starr, circa 1971


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