CompuServe Messages

#A4000

    20-Jan-93 02:28:45
Sb: #85785-#A4000
Fm: Don Curtis/SYSOP 76703,4321
To: Denny Atkin [COMPUTE/Ami 75500,3602
Denny, Think about it: Gee…we could put an '030 in the machine and cut our costs by $500! Gosh…that means we could cut the retail price by $1,000! Neat…we'd be making $500 LESS on each machine…Cool. Yes, there are margins built in, but there is also bottom line profits. And it doesn't make sense to cut costs by $500 and prices by $1000. Sure, if you did that…you'd hope to make total dollars up by increases in volumn. But the reality is we're talking a relatively low volumn machine anyway…so I doubt it'd make it up. I certainly could be wrong though. What I think you will see is the price of hte '040 drop significantly over the next 6 months or so. And if it does…the whole purpose of going to an '030 based machine becomes moot…and you've (Commodore that is) just wasted a lot of money coming up with an '030 based machine because it'll have a very short lifetime (in my opinion of course). Don