Save $49,000?- Stephen Van
Esch
May 22, 2000
What happened to $49,000? I'm at a loss. Last Monday Apple announced a price cut for a
popular web software package. That in itself is not unusual. Software companies routinely drop
prices on software. Nor is it surprising that Apple dropped the price to extend its
presence in the web server market. What is pretty surprising is that the price drop is $49,000, give
or take a few hundred dollars. If the original package had retailed
for $150,000, I might not raise an eyebrow. But considering the fact
that the software retailed for $50,000, a $49,000 price drop is
pretty substantial. Of course were talking about WebObjects here, and this kind of
price drop begs a few questions. Who set the original price?Someone seems to have made a major goof here. Maybe there's a
decimal out of place or something? Maybe a dart board in the
marketing room? What could possibly lead Apple to justify a $50,000
price to begin with? Granted, the price may have been fair, but a
price drop of $49,000 makes me wonder if it was worth $50,000 in the
first place. Who set the new price?Looking at the new price and the old price, I can't really
understand how they settled on $699. Why not $30,000? Or $15,000? Or
even $5,000. If people bought it at $50,000, they'll really go for it
at $5,000. The pricing model seems to be fairly arbitrary. What about recent customers?I'm sure that there's some poor guy or gal out there who bought
WebObjects two weeks ago at the full price of $50,000. Will Apple
give these poor souls a break, like maybe deliver a brand new Mustang
to their door? They'd still be $25,000 ahead of the game if they did
that, right? And what great PR! Is Apple now losing money on WebObjects?Let's be serious for a moment. If $50,000 was a fair price for
WebObjects, Apple is taking a very serious loss here. How can it
justify this loss? They may want to gain market share but does a loss
of this magnitude justify the goal they are trying to achieve? If they are not taking a huge loss on this software package then
it's clear that the software was not fairly priced to begin with. Is
it appropriate for Apple to set such a price on a software product?
Is it fair for Apple to take early adopters for a ride and then
implement a huge price drop? Which is it, a huge loss or an unfair price? I'd sure like to know. 
- <this article available in a printer-friendly
format>
Biography- Steve Van Esch is a regular contributor at osOpinion
and runs The Text Pound, a
small corner of the Web that tries to find a place for homeless or
abandoned articles. Steve loves the Mac and is bilingual, since
he's also fluent in Windows and French.
Recently on Mac ScopeElsewhere on Low End Mac- Building rumors, fooling
Slashdot, Anne Onymus with Dan Knight, 8/18. We didn't set out
to fool Slashdot or anyone else -- and we explain how to build
your own rumors.
- Don't upgrade that Quadra
630, Adam Robert Guha, Apple Archive, 8/18. Most upgrades for
this particular model just don't make economic sense.
- Browse different, Dan
Knight, Mac Musings, 8/18. One way browsers could improve the Web
surfing experience.
- Mac-N-DOS list. Yes, it's
a bad pun, but if you have to use both Macs and Windows, this new
list could be a great resource.
- New iMacs: Something for
everyone, Kel Taylor, Mac to the Future, 8/17. "...the iMac
has grown into a family, and a large one at that."
- Apple ditching G4, Anne
Onymus, 8/17. Apple embraces IBM and the G5, leaving Motorola
behind.
- Happy Birthday, iMac!, Dan
Knight, iMac Channel, 8/16. "The iMac has redefined the industry
and redefined Apple as a trendsetter."
- The Land Before Silicon,
Manuel Mejia, Mac Daniel, 8/16. Travels in Russia with a PowerBook
100.
- The G4 Cube and Radeon fans,
Paulo Rodrigues, Tangerine Fusion, 8/16. How ATI spilled a trade
secret. Oops.
- My First Mac Clone, Spencer, My
First Mac, 8/15. Sometimes your first Mac isn't even made by
Apple.
- New @ Low End
Mac: Receive email information on new articles.
Mac
Scope ©2000 by Stephen Van Esch.
Low End
Mac established April 7, 1997. This page,
the entire Low End Mac site, and all subsites of
<lowendmac.com> copyright ©1997-2000 by Dan
Knight unless otherwise noted. All rights
reserved.
LINK
POLICY: This site allows and encourages
links to any public page, so long as the linked page does not appear
within a frame that prevents bookmarking the linked page.
Low End
Mac is an independent publication and has
not been authorized, sponsored, or otherwise approved by Apple
Computer, Inc. Apple, the Apple logo, Macintosh, iMac, and iBook are
registered trademarks of Apple Computer, Inc. Additional company and
product names may be trademarks or registered trademarks of the
individual companies and are hereby acknowledged.
 LinkExchange
Member
| Select content available in AvantGo
format for Palm, WinCE users.  Mac of the Week Mac IIfx
Lists of the Week Apple2list. LisaList
Channels - Power Macs - iMac Channel - iBook/PowerBook Computer Profiles - iMac - Power Mac - PowerBook/iBook - Performas - Mac Clones - Older Macs - Lisa Editorials Email Lists Consumer - advice, reviews - guides, deals Software Apple History Best of the Web Miscellaneous Links About Low End Mac Receive our
daily newsletter
Support LEM MacMall Outpost.com Software
Outlet Amazon.com Mac
Book Source MobShop.com DVD
Express CoolVCD.com MusicForce AuctionMac Sponsor LEM
|