From: Matt Howe (matthowe_at_comcast.net)
Date: Tue Jun 14 2005 - 14:53:22 PDT
As a professional programmer who works everyday for those incremental
improvements in software, I'll tell you, they are not free. Development cost
in man power when developing a new piece of software, be it OS or
application or the latest video game, is the major cost. My company
developed a new business application. We are considered the cutting edge in
our little nitch market. But even at that, it is taking us 3-4 years to turn
a profit on this cutting edge application. Programmers don't work cheap.
Just my $2 worth. :)
Matt "Ducky" Howe
matthowe_at_comcast.net
mywebpages.comcast.net/mhowe41
-----Original Message-----
From: newtontalk-bounce_at_newtontalk.net
[mailto:newtontalk-bounce_at_newtontalk.net]On Behalf Of Martin Joseph
Sent: Tuesday, June 14, 2005 3:06 PM
To: newtontalk_at_newtontalk.net
Subject: Re: [NTLK] [OT] Concerning Apple's Switch to Intel Chips...
On Jun 14, 2005, at 11:11 AM, Michael J. Hu=DFmann wrote:
> Martin Joseph (martyNT_at_barknaturalpet.com) wrote:
>
>> True, but the profit margin on software is SO much higher then on
>> hardware.
>
> The profit margin isn't fixed; it depends on the number of copies =
sold.
> Given the number of copies they can expect to sell, Apple would need =
to
> ask for a much higher price for Mac OS X to arrive at the same profit
> margin as Microsoft.
This is wrong. The incremental cost of software is next to nil. =20
Especially when considering that Apple needs to develop the OS for=20
there own boxes anyhow. All the revenue that intel hackers generate is=20=
gravy.
> The Windows business model works well for
> Microsoft, but there's no place for a smaller vendor co-existing with
> them (remember Digital Research?). Either Apple wipes out Microsoft=20
> from
> the face of the earth to become the new Microsoft, or they lose. Or=20
> they
> stick to their existing business model and stay a hardware company,
> selling expensive computers and cheap operating systems.
$129 isn't cheap. They can actually do both of the above, continue=20
there existing model, while selling some OSX to Intel people and=20
keeping the all out war with MS option on the table.
Marty
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