Apple reduces prices on line of Power Macs

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.

PowerPC-based system, Company marketing practices, Company pricing policy, Company Business And Marketing, Apple Macintosh Power Macintosh 7200 75 (PowerPC-based system), Apple Macintosh Power Macintosh 8500 120 (PowerPC-based system)

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Apple's choice: preserve profits or cut prices

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.

Product information, Market share, Product marketing strategy, Product market share, Price, PowerPC-based System, Apple Power Macintosh (PowerPC-based system)

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