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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: Jonathan Bird who wrote (9622)	3/17/1998 3:38:00 PM
From: rhet0ric	Read Replies (1) of 213176

You think developing the MacOS is cheap huh? You have actually added a primary reason that Apple CANT reduce margins to that of PC makers. There are others. Well, yeah, but: 1) the cost of developing MacOS is the same whether Apple sells cheap boxes or not; 2) Apple is currently profitable overall without selling cheap boxes; 3) selling boxes in volume reduces the per unit cost of developing the OS; 4) I would venture to guess that Apple now makes a profit on OS sales through upgrades by current users alone; 5) those profits now show up in Apple's numbers, instead of Claris's; 6) selling cheap boxes would mean an increase in the user base, which means more upgraders in future; 7) Apple is following a unified OS strategy, which means their resources and costs are smaller but more concentrated; 8) the MacOS will be used in consumer devices in future, further diluting the cost of development and increasing the user base once again. So, what are the other reasons? rhet0ric

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