Path: utzoo!utgpu!water!watmath!clyde!att!rutgers!mailrus!ames!coherent!mailcom!postmaster
From: postmaster@mailcom.UUCP (Bernard Aboba)
Newsgroups: comp.sys.mac
Subject: Re: Apple Gets Greedier (Read it and Weep!)
Message-ID: <424.232FB084@mailcom.UUCP>
Date: 14 Sep 88 10:12:58 GMT
Organization: FidoNet node 204/444 - MailCom Message Cen, Palo Alto CA
Lines: 30


I would like to point something out that hasn't been mentioned yet, which 
is the fall of the U.S. dollar.  Apple's long term contracts have begun 
to expire, NOT JUST on SIMMS, but on many other items as well.  Since 
they buy Japanese made items in large quantities (the large majority of 
parts for all Macs are made in Japan), they are having to pay the 
exchange rate difference on just about all of it.  Since two years ago, 
the dollar has sunk 50% versus the Yen.  Japanese firms are no longer 
absorbing the exchange rate differences out of their own pockets -- it's 
gotten to be too much.  So my guess is that Apple's costs are now 
increased on just about every product by 25% (50% times 50%, say).  The 
SIMM increases alone do not explain the price rises; in a Mac II, that 
would only account for roughly $100-150 of the increase, at most.  
.
One last comment -- the computer industry as we know it is not what 
economists would regard as a free market, because there is strong product 
differentiation.  Only the PC clone market is a true free market.  The 
Macintosh has no serious competitors at the moment, and so Apple has more 
or less a monopoly on graphical interface machines at the moment, and is 
able to raise prices knowing that it will increase revenues.  

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