[X4U] Smart people

[Neil Laubenthal]

I think the reason it's low is because they decided to make it cheap enough to ensure wide adoption. The production and distro cost of a DVD/box, while not insignificant, can't be more than a couple of bucks in the numbers that Apple makes and ships them. They used to sell media for what . . .$20 or so shipping and handling . . .and were likely making a profit at that. I would be surprised if the box cost was more than $5 myself . . .which means it's not a significant driver in keeping the price down.

Market penetration and the obvious overall drive by Apple to lower software prices (how much cheaper in the App store are Aperture, iLife, and even 3rd party apps like Pixelmator) . . .this is a conscious decision not to try to make the OS a profit center.

On Jun 14, 2011, at 4:59 PM, Earle Jones wrote:

> 
> Lion, on the other hand, is a major upgrade with many changes.  It is the "no-DVD" approach (download only) that keeps the price that low.
> 


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There are only three kinds of stress; your basic nuclear stress, cooking stress, and A$$hole stress. The key to their relationship is Jello.

neil