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From: jer@peora.UUCP (J. Eric Roskos)
Newsgroups: net.micro.mac
Subject: Re: The 'high' cost of a Mac
Message-ID: <1388@peora.UUCP>
Date: Tue, 30-Jul-85 15:13:23 EDT
Article-I.D.: peora.1388
Posted: Tue Jul 30 15:13:23 1985
Date-Received: Thu, 1-Aug-85 21:48:20 EDT
References: <3181@decwrl.UUCP>
Organization: Perkin-Elmer SDC, Orlando, Fl.
Lines: 28

>       If Apple were making a huge profit off the Mac, how come they had to
> lay off employs, and show a loss?  I wish my Mac cost less too.  And I'd
> like to have immortality.  But for reasons beyond my control (and beyond
> Apple's control) I'm not likely to get either.

Just basic microeconomics at work... you charge too much for your system
($1000 more than an equivalent IBM PC, according to last night's Sears
Business Center ad), not many people buy it... you make less than if you
charged less and sold more...  So, you either

1) reduce the price

2) reduce the supply by laying off people and reducing production

3) go out of business if you can't do 1 or 2 cost-effectively.

Why is that so hard to understand?  When the majority of your customers are
saying "I won't buy it, it's too expensive", and you go on and say, "we
have the greatest system in the world, so you WILL buy it!...and if you try
to outsmart us, we'll get even!", you're headed for big trouble.  Few
customers will buy a product out of sympathy, as you have suggested doing.
-- 
Shyy-Anzr:  J. Eric Roskos
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