Friday, June 28, 2002

Why are Mac's piling up? The iMac, once in short supply, is now gathering dust on shelves. Why? Part of the reason is the price increase -- if things become more expensive, people by less of them. And if customers anticipate a price, they will delay their purchase until the price comes down. Finally, I think people are waiting for the release of OS X.2 or big annoucements at MacWorld NYC, so again are delaying their purchases. Coase, who is utterly brilliant, wrote about the effect of strategic buying decisions on pricing power, and that's working against Apple here. Moreover, the internet may be making this worse as the Mac faithful know much more about what to expect than they did in years past.


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