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From: gillies@p.cs.uiuc.edu
Newsgroups: comp.sys.mac
Subject: Re: Apple Gets Greedier (LONG and a
Message-ID: <76000284@p.cs.uiuc.edu>
Date: 22 Sep 88 15:55:00 GMT
References: <1257@aucs.UUCP>
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Nf-ID: #R:aucs.UUCP:1257:p.cs.uiuc.edu:76000284:000:1014
Nf-From: p.cs.uiuc.edu!gillies    Sep 22 10:55:00 1988


I don't know the situation at Apple, but have you considered the
following problem?

* The production facilities are running at 100%, it will be a while
* before they can add more capacity, and Apple is having a hard time
* keeping the machines on dealer shelves (perhaps because of the DRAM
* shortage?)  Businesses who will pay extra $$$ can't get the machines
* they need.

In this situation, the natural economic reaction is to raise prices.
It's simply supply & demand.  Prices on PC-ATs have gone up in the
last year, also.  So have employee salaries, and business expenses.
Apple is working to develop many new products, and could probably
finish the products sooner with more developers.  If production is
truly at 100% capacity, then it takes a LOT of new capital to build
more production.  All these things cost extra $$$.


Don Gillies, Dept. of Computer Science, University of Illinois
1304 W. Springfield, Urbana, Ill 61801      
ARPA: gillies@cs.uiuc.edu   UUCP: {uunet,ihnp4,harvard}!uiucdcs!gillies