day 60
![]()
behind apple's blunder 2: the worm in the apple
by Philip Machanick![]()
Yesterday, we described the advantages Apple had in mid-1995 when Windows 95 was released by
Microsoft.
Apple was poised to expand market share -- or
so it seemed. Apple had the potential to
deliver competitive performance. The old
excuses for buying a Mac despite the higher
price should have fallen away.
I expected Apple to move fast to consolidate
their advantage by pushing high-end systems
wherever they could. I also expected Apple to
rapidly move the low-end Macs from the old
Motorola 68040 line to a PowerPC 603e. The 603e
was likely cheaper to make, and was already
shipping at clock speeds faster than 100MHz.
What did Apple do instead?
The underestimated the demand for high-end
systems. The margins on these systems could
have sustained more competitive pricing at the
low end. Instead, Apples failed to drop the
68040 line.
The result? Coming tomorrow.
behind apple's blunder 1
Daily Dose Index