Article Abstract:
Apple announced significant price cuts for its Power Macintosh 7200 and 8500 PowerPC-based systems to head off expected competition from Microsoft's forthcoming Windows 95 operating system, but 17 months after Apple introduced the PowerPC product line. Apple promised to offer its PowerPC line for prices at or below competing Intel-based products, but until now it has kept prices high to maximize profits. The high prices and chronic component shortages have caused an erosion of Apple's market share from 15% in the 1980s to only 8% in 1994. Analysts predict that Apple's market share will be further hurt by Microsoft's new Windows 95, which was designed to eliminate many of Apple's advantages. The 75MHz Power Mac 7200 machine is now priced at $1,699, which is about $100 to $300 below comparable machines from IBM and HP, but not below low-cost Packard Bell and AST Research machines. The Power Mac 8500 machine, the high-end of the PowerPC line, remains priced above rival Intel machines at $3,999.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The 1992 microcomputer price war generates unprecedented sales of about 3.5 million units between Thanksgiving and New Year but prices are not expected to be as aggressive in 1993. The first volley was fired by Compaq with its ProLinea line of low-cost microcomputers, intended to perk up its dismal 1991 market performance. The demand for the machines has been so high, Compaq has not been able to meet it. Analysts place the fall of microcomputer prices in 1992 at an average of $75 to $100 a month. With the expected rise in the cost of disk drives and power supplies, however, and the possible US levy on memory chips from South Korea, the price war is not expected to continue. Microcomputer manufacturers and vendors are changing their sales pitches from cutthroat pricing to value for money.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Apple is under pressure, because of declining market share, to slash prices on its popular Power Mac PCs and PowerBook laptops. Apple positioned itself to challenge machines using the Windows operating system by introducing a new line of computers based on the fast PowerPC CPU. The PowerPC chip was jointly developed by Apple IBM Motorola. Experts has predicted Power Mac PCs to be priced less than Intel-based systems because PowerPC processors are cheaper to manufacture and require fewer transistors. Lower pricing was was expected to enhance Apple's market share and result in increased software development for the Macintosh platform. While Apple cut the price of its systems, Intel responded by lowering the price for its Pentium processors.
User Contributions:
Comment about this article or add new information about this topic: