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From: ron@woan.austin.ibm.com (Ronald S. Woan/999999)
Newsgroups: comp.sys.ibm.pc
Subject: Re: IBM vs. Mac - Long (was Re: Xerox s
Message-ID: <1214@awdprime.UUCP>
Date: 22 Dec 89 19:11:53 GMT
References: <7075@shlump.nac.dec.com>
Sender: news@awdprime.UUCP
Reply-To: @cs.utexas.edu:ibmchs!auschs!woan.austin.ibm.com!ron
Organization: IBM-Austin, AWD
Lines: 44

In article <7075@shlump.nac.dec.com>, goldstein@carafe.enet.dec.com 
Goldstein) writes:
> 
> In article <216100173@trsvax>, slimer@trsvax.UUCP writes...
> >1) MAC II, 40M	      - $3,750
> >2) IBM AT 339         - $1,825
> >3) Compaq 386/16, 40M - $2,500 
> > 
> >There's your difference. These figures are published from PC Week, December
> >18, 1989, page 13, source The Boston Computer Exchange. 
> BoCoEx prices aren't based on the manufacturers, but upon users 
> willingness to pay.  It's a "free market" in secondhand gear.  The Mac II
> commands a higher price because people are willing to pay more.  Had IBM
> set the list price of the AT339 at $30,000, it would still sell at $1825
> today, because that's what people are willing to pay.

The free market is a two-way street. Price also has a lot to do with
people's willingness to sell. The BoCoEx gives a good idea of what the
cost of buying a secondhand machine is which was all the original
poster wanted to say. The Mac II commands a higher price because the
initial investment of the original owner was so high that they are not
willing to part with it for less, not because that is the natural
price that people are willing to pay (people would always rather pay
less). It is the convergence of supply and demand curves.

The beauty of free market competition, i.e. the IBM clone market, is
that prices are driven down (just look at the pricing of the IBM
PS2/55X) for everyone. It also forces increased innovations and
greater incentive to be earlier to market with technology ('486 clone
influx). Unlike the Mac world, IBM has big name clone makers (Compaq,
Dell, Digital, Tandy, Data General, AT&T, Intel) competing against it
on roughly equal footing causing even IBM to bring down the
price/performance curve and squeeze profit margins. With competitive
plug-in compatibles, of course the street price will be lower. Free
market competition with open systems ultimately helps the consumer get
more bang for his buck.

					Ron

+-----All Views Expressed Are My Own And Are Not Necessarily Shared By------+
+------------------------------My Employer----------------------------------+
+ Ronald S. Woan  (IBM VNET)WOAN AT AUSTIN, (AUSTIN)ron@woan.austin.ibm.com +
+ outside of IBM       @cs.utexas.edu:ibmchs!auschs!woan.austin.ibm.com!ron +
+ last resort                                        woan@peyote.cactus.org +