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Daemon
Premium
join:2003-06-29
Berkeley, CA
Reviews:
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reply to sfogliatelle

Re: interesting take on Apple's pile of cash

Cut mac prices to launch price war, sales go up, revenues go up, maybe, but margins go down, which freaks out wall street and the stock will drop more.

Then, in a few quarters, all of the low-price mac buyers will dry up but they can't raise the prices back to what they were.

In the meantime, they've just undermined their profit stream in a market that is overall shrinking.
--
-Ryan
I use Linux, OS X, iOS and Windows. Let the OS wars die.


horacebork
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join:2011-03-17
09001
Reviews:
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i don't think simple price cuts will constitute a price war.
i also don't think most mac prices are justified.
low price buyers of any kind are never in short supply - they won't dry up.
microsoft didn't undermine their profit stream selling low-priced junk.
and yeah, apple is in park right now, but they're closer to drive than microsoft.
but they might not be closer to drive than some upcoming mfrs..
--
“a day without sunshine is like, you know, night.”