Path: utzoo!utgpu!jarvis.csri.toronto.edu!mailrus!tut.cis.ohio-state.edu!ucbvax!UCONNVM.BITNET!SEWALL
From: SEWALL@UCONNVM.BITNET (Murph Sewall)
Newsgroups: comp.sys.apple
Subject: Re: Lasers cost cutting secret.
Message-ID: <8903022338.aa13231@SMOKE.BRL.MIL>
Date: 3 Mar 89 04:30:01 GMT
References: <adm!smoke!gwyn@NYU.EDU>
Sender: daemon@ucbvax.BERKELEY.EDU
Organization: The Internet
Lines: 43

>In article <8902281447.aa18108@SMOKE.BRL.MIL> SEWALL@UCONNVM.BITNET (Murph
> Sewall) writes:
>>>>How is it that Laser can make a profit selling "basic computing" at prices
>>>>Apple seems unwilling to compete with?
>>>I suppose that letting another company sink millions into research and then
>>>"borrowing" the ideas that work out best could cut down on some overhead.
>>R&D costs are SUNK (gone, kaput, spent years ago!).  Development is ALREADY
>>PAID FOR (whether or not in retrospect it was a good idea).  Besides, the
>>Apple 2 line already has profited Apple enough to make Midas jealous.
>
>You talk about faulty economics, then come up with a lulu.
>
>I don't know all the reasons that make Apple products seem over-priced,
>but in addition to having to maintain the corporate operation (including
>R&D), it must include financing whatever customer support advantage Apple
>theoretically offers over "clone" manufacturers.  (The support might not
>really be what it should be, but it probably IS a factor that influences
>many purchasing decisions.)

Where's there a "lulu?"  User support (and any other services are a
CURRENT EXPENSE justified ONLY if customers value them enough to PAY for
them (if they permit a price premium that meets or exceeds their cost).
That's a quite different reason for an Apple //c (or //c+) costing more
than a Laser.  HOWEVER, it isn't at ALL clear that current support for
the //c and //c+ (as oppossed to the IIgs and Mac line) has very much
differential value (perceived or real) to customers (compared to the support
for Laser's).  Apple also gets some differential value from their
greater brand name familiarity (corporate "goodwill").  It's entirely
conceivable that the Apple //c SHOULD be priced higher than a Laser model
(unless Apple REALLY wants to *zap* Laser).  Still, lest we lose sight of
the original notion that started this debate, the idea was that the
present differential is larger than makes sense.

Murph Sewall                       Vaporware? ---> [Gary Larson returns 1/1/90]
Prof. of Marketing     Sewall@UConnVM.BITNET
Business School        sewall%uconnvm.bitnet@mitvma.mit.edu          [INTERNET]
U of Connecticut       {psuvax1 or mcvax }!UCONNVM.BITNET!SEWALL     [UUCP]

-+- I don't speak for my employer, though I frequently wish that I could
            (subject to change without notice; void where prohibited)

According to the American Facsimile Association, more than half the calls
from Japan to the U.S. are fax calls.  FAX it to me at: 1-203-486-5246