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From: thomsen@spf.trw.com (Mark R. Thomsen)
Newsgroups: comp.sys.next
Subject: Re: NeXT price restructuring
Message-ID: <282840D5.9D4@deneva.sdd.trw.com>
Date: 8 May 91 18:17:56 GMT
References: <1991May7.141318.14673@ms.uky.edu>
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In article <1991May7.141318.14673@ms.uky.edu> johnc@ms.uky.edu (John Coppinger)  
writes:
> 
> An article in the Wall Street Journal today said IBM plans to cut their
> RS/6000 prices from 12% to 60%.  It also says analysts expect Sun and 
> DEC to follow suit.  If NeXT's price restructuring does not move them
> down the price scale, then it could be a major nail in their coffin.  
> Let's all hope that this restructuring is motivated by foresight, and
> not greed.
> 
Perhaps the exponential increase in NeXT sales and their bang-for-buck
edge has something to do with it. :)

You don't become a multi-billion $ company by ignoring your competition,
potential and current. At least not all the time. IBM, DEC, and Sun may
be reacting. IBM has so many problems with RS/6000 that I couldn't see
buying one unless it was so cheap I thought the price was a joke.

NeXT's earlier price restructuring (around late 1989) was done in a
timely (when the price should go down based on parts costs that you and
I can check on) way. They said they are using expensive new technology
(e.g., 68040) and as costs come down they lower prices. I anticipate
the price lowering late this year for NeXTstations.

Mark R. Thomsen