Apple Initiates Big Price Cuts
Apple Computer Inc. on Tuesday slashed prices by up to 37% on most of its Macintosh personal computers and low-end notebook models in a move to boost its growing market share.
Computer buyers, who heard rumors of the cuts for more than a week, flocked to stores for discounts offered just ahead of the list price reductions, retailers said.
“We dropped our prices a couple of days ago and have literally sold more Mac Classics in the past two days than all of last month,” said John Sykes, co-owner of Computer Attic Inc., the largest Apple dealer in the San Francisco Bay area. “The traffic is just unbelievable.”
The price cuts, which officially went into effect Tuesday, are suggested retail prices. Computer dealers usually sell below such list prices, but discounts can vary widely.
Apple’s list price reductions ranged from 9%--from $1,649 to $1,499--for a Macintosh Classic with 4 megabytes of memory, to 37%--from $5,269 to $3,299--for the Macintosh IIci.
Robert Puette, president of Apple USA, said the list price reductions are part of the Cupertino-based company’s strategy of increasing sales by offering low prices. The company just completed a rebate program to boost sales and market share.
