Path: utzoo!utgpu!jarvis.csri.toronto.edu!mailrus!tut.cis.ohio-state.edu!rutgers!cbmvax!grr
From: grr@cbmvax.UUCP (George Robbins)
Newsgroups: comp.dcom.modems
Subject: Re: Where is modem progress?
Keywords: V.32
Message-ID: <7006@cbmvax.UUCP>
Date: 29 May 89 02:01:56 GMT
References: <78700004@p.cs.uiuc.edu> <6977@cbmvax.UUCP> <753@hsfmsh.UUCP> <7002@cbmvax.UUCP> <132@swituc.UUCP>
Reply-To: grr@cbmvax.UUCP (George Robbins)
Organization: Commodore Technology, West Chester, PA
Lines: 25

In article <132@swituc.UUCP> pmb@swituc.UUCP (Pat Berry) writes:
>In article <7002@cbmvax.UUCP>, grr@cbmvax.UUCP (George Robbins) writes:
>> The real price cuts don't start until
>> somebody can avoid paying the piper on proprietary technology, and is
>> willing to sell products without feeling a compulsion to jack up the
>> margin to cover R&D or other business issues.

>I'm afraid I must take exception to this statement.  Companies do not produce
>products for their health.  All companies have the right to expect the recovery
>of costs (including 'R&D or other business issues') plus a decent return on
>their investment (aka profit).  In fact, feduciary laws require the CEO to do
>his best to make the company profitable!

My main point was how things become cheap, not why they are often initially
expensive.  Companies may do as they wish as long as they have some corner
on the market.  The prices may then decrease a few increments as the result
of peer competition, but the reduction to bargain-basement prices doesn't
really begin until other competitors come along - either with different
technology or operating on a different basis (zero R&D, off-shore manufacture,
low overhead sales channels, etc.)

-- 
George Robbins - now working for,	uucp: {uunet|pyramid|rutgers}!cbmvax!grr
but no way officially representing	arpa: cbmvax!grr@uunet.uu.net
Commodore, Engineering Department	fone: 215-431-9255 (only by moonlite)