Path: utzoo!utgpu!news-server.csri.toronto.edu!rpi!usc!apple!portal!cup.portal.com!ed_l_patriquin
From: ed_l_patriquin@cup.portal.com
Newsgroups: comp.sys.next
Subject: Re: NeXT cost on the Slab - re Low End Next
Message-ID: <41060@cup.portal.com>
Date: 8 Apr 91 19:38:50 GMT
References: <1991Apr05.124300.5623@dit.upm.es>
Organization: The Portal System (TM)
Lines: 11

Typical margins in the computer retail channel are ~45%, with few 
notable exceptions (the Mac Classic).  That would mean that NeXT
was making $2747 for each Slab (NeXTstation).  NeXT would need to
have a gross margin of at least 35% to be profitable, which would
mean that the manufacturing cost, not the parts cost, of a Slab 
must be less than $1785 or they are losing money.

Sounds like they are doing one heck of a job at cost reduction or 
they are losing money.

Ed Patriquin