Path: utzoo!utgpu!jarvis.csri.toronto.edu!cs.utexas.edu!tut.cis.ohio-state.edu!ucbvax!UCONNVM.BITNET!SEWALL
From: SEWALL@UCONNVM.BITNET (Murph Sewall)
Newsgroups: comp.sys.apple
Subject: Re: Macintoshes, and the GS
Message-ID: <9002161929.AA25783@apple.com>
Date: 16 Feb 90 17:35:29 GMT
Sender: daemon@ucbvax.BERKELEY.EDU
Organization: School of Business - U. of Connecticut
Lines: 42

On Wed, 14 Feb 90 18:44:08 EST you said:
>In article <9002141548.AA08264@apple.com> you write:
>>
>>So far, the motherboard is reported to be physically smaller than the
>>ROM 03.  How much can the case cost?  You'll be able to upgrade by buying
>>a new CPU.  The economics of trade-in (with attendant administrative
>>overhead) may be such that a motherboard swap would be as expensive as
>>a new CPU.  In short, "upgrade" seems like a non-issue.
>>
>   Is this necessarily true? The keyboard and mouse costs $150+, the power
>supply and case probably come to as much again. A lot of the components on
>the mother board could probably be reclaimed, at least the RAM and the IWM
>chips. Video ROM would probably be outmoded, but the CPU could still be
>sold to a manufacturer of microwave ovens. I've always tended to believe
>the $300 replacement cost for all motherboard repairs when not under
>warranty. I'm expecting an upgrade to ROM04 for less than C$500.
>   Should I be worried?

The manufacturing cost of the case and power supply is unlikely to be
anywhere near $150 and the administrative cost of running a recall program
(and selling sencond-hand electronics) could easily match the expennse of
producing cases and power supplies.

Actually, the COST isn't the relevant number.  Demand is the primary issue.
Suppose Apple prices the CPU and "upgrade" such that they make the same
profit regardless (recall that most analyses of the //e to IIgs upgrade
concluded that the cost came out about the same either way)?  In that event,
you and most others would probably perceive the upgrade as "too expensive."

But, if Apple lowers the upgrade price, the issue is: would there be enough
additional sales to offset the loss in margin (realisitically, probably not)?

If you REALLY expect the difference between ROM 03 and ROM 04 to only be
worth approximately the cost of an accelerator for the ROM 03 machine, then
you should be depressed (either that or you really do believe in the
tooth fairy).  Frankly, I hope Apple builds enough additional functionality
into the ROM 04 machine to be worth an additional investment on the order
of $2,000 (but maybe priced at $1,800 :-)

/s Murph <Sewall%UConnVM.BITNET@CUNYVM.CUNY.Edu>         [Internet]
      or ...{psuvax1 or mcvax}!uconnvm.bitnet!sewall     [UUCP]
 + Standard disclaimer applies ("The opinions expressed are my own" etc.)