Linked by Andrew Youll on Sun 7th Aug 2005 15:36 UTC, submitted by heron
Thread beginning with comment 14872
To view parent comment, click here.
To read all comments associated with this story, please click here.
To view parent comment, click here.
To read all comments associated with this story, please click here.





Member since:
Lets say 100,000 people want to run Mac OSX but refuse to pay the high price for the hardware. Yet are willing to go out and buy Mac OSX and install it on their own beige box. My question to you is did Apple make more money from that or would they make more if the 100,000 just decided to not touch Mac products because of the hardware price.
You've committed the fallacy of assuming that the people who are willing to buy Mac hardware would continue to buy Mac hardware if a better alternative existed. When Apple last attempted licensing, they lost sales to competitors at both the low and high end.
Now Apple sells Mac OS X for $130. Let's assume that is all profit. Now let's assume that Apple makes an average of $260 profit per machine. That means that 100,000 new Mac OS users would be negated by 100,000 existing Mac hardware users using third party hardware.
The numbers are bound to differ slightly based upon the profitability of each product, and the number of people gained and lost. But it ought to be enough to illustrate that a naive market analysis is not enough.