To: HerbVic who wrote (24064 ) 4/17/1999 2:36:00 PM From: Dragonfly Respond to
For investors however, these value added products provide enormous growth potential. Especially OS X, Quicktime 4.0, Firewire, WebObjects 4.0, etc... solutions to customers. You sell them an editing workstation. To you and me its a regular blue G3 with the appropriate hard drive and some firewire cabling. To a guy who's focus is on video or film production, its an editing station... he really doesn't want to have to care about the details- there are enough technical issues with his primary medium to deal with. You get a slight margin premium, and you get a solid customer. Later you sell them an upgrade to Final Cut, but you give it away initially. Your competition then becomes the regular version of your machine + $500 spent on the competitors product. Furthermore, when compared to the Wintel option, the customer sees Commodity hardware + $500 for competitors product + $2,000 in configuration hassles. So, you have a price and compatibility advantage, and this helps unit sales.
