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Technology Stocks : Apple Inc.

AAPL 278.28

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Dec 12 9:30 AM EST

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To: rhet0ric who wrote (9620)	3/17/1998 5:25:00 PM
From: Bill Jackson	of 213176

Rhetoric; the major Wintelers pay a flat fee for every box they ship and that has been reputed to be from $45 to $65 and varies with the OEM.Newerones sign on at the higher end. Does any one work for a Wintel OEM whou could confirm this price structure? Screwdriver shops buy an OEM package from other OEMs for about $80-85 each(win 95B--32 bit fat). SO the cheapest screwdriver shops pay more than the OEMs. Retail packages are in the $100 range. Apple can choose to licence and if they do should have a number of packages for each board speed/cost point,( more or less) This avoids the licencees making expensive boxes and buying cheap licences. It looks like the market will support a fee of around 10% of retail for the OS, and so Apple should do that. A $5000 system= $500, and $1000 = $100, this would aloow some level of clones and stream the $100-500 back to Apple. There would need to be some way to make the different priced OS only work on their own machines. I suspect that Apple has decided to stay in their profitable niche and make profits in other areas. It got beat & burnt trying to beat Wintels, and might not choose to try that again, a wise move , however to try with another effort and money via cloners is tryable, however they seem to be too timid to do it again. Bill

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