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#1 |
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Kasper's Automated Slave
Join Date: Nov 1997
Posts: 6,171
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Are netbooks shrinking Apple's slice of the portable market?
With momentum in a dreary global economy now favoring mini-notebooks called netbooks, many top tier PC vendors are seeing various forms of success in the segment, which for the first time last quarter showed signs of straining Apple's share of the overall portable computing market.
A report released by DisplaySearch this week notes that netbooks have emerged as a bright spot in the otherwise dismal PC market, with sales rising some 160% during the third quarter of the year, with all of the major players except Apple now contributing their own offerings. The latest wave of netbooks are different from those in years past, which were well equipped and typically fetched a premium over full-sized netbooks. Today, they're barebones systems that start at around $300. And they've been gaining popularity ever since PC vendor Asus opened the door to the market late last year with its Eee PC, an approach to portable computing that was quickly duplicated by many of its rival PC makers. DisplaySearch expects the netbook market to surge from less than 1 million units in 2007 to over 14 million units by the end of this year. Going forward, the firm believes the segment is poised for even more dramatic growth, propelled by low prices and a user experience that much more closely mirrors a typical PC. "With the lone exception of Apple, all of the top 10 PC brands have entered the mini-note PC market, initially as a response to the competitive threat posed by Asus, but also to satisfy demand from customers for low-priced, thin and very light (less than 3 pounds) products that provide at least a modicum of typical office software functionality and also enable greater mobility," said John F. Jacobs, Director of Notebook Market Research for DisplaySearch. He added that "demand for greater mobility is especially evident in certain geographies as a number of mini-note PC brands are partnering with telecom providers to subsidize mini-note PCs, much like they do mobile phones." More specifically, Jacobs is forecasting the netbook segment to settle at approximately 16% share of the notebook PC market by 2011, fueled by a combination of early adopters, consumer and enterprise customers seeking a smaller or secondary notebook PC, as well as new customers in emerging markets." As part of his report, the researcher threw together a market share chart that combines netbook and traditional notebook sales by brand. It shows that, despite sales of Macs growing at more than 2.5 times the industry average, the lack of a netbook offering means the company's slice of the overall portable computing market has shrunk from 4.6% in the third quarter of 2007 to 4.1% in the third quarter of this year. In addition, each of the top PC vendors with the exception of Sony and Lenovo grew their combined portable shipments faster than Apple's 24%. For his part, Apple chief executive Steve Jobs has made it clear that Apple isn't going after the budget PC market just yet. "We choose to be in some segments of the market and we choose not to be in certain segments of the market," he explained during a recent conference call. "We're not tremendously worried," he said. "As we look at the netbook category, that's a nascent category. As best as we can tell, there's not a lot of them being sold." Still, Jobs didn't shut the door on an Apple netbook completely, explaining that the company's plan is to observe the market for the time being and see how it evolves. "[A]nd we have got some pretty interesting ideas if it does evolve," he added. In a lengthy report last week, Technology Business Research analyst Ezra Gottheil dismissed the notion of an artificial premium on Apple products, saying the Mac maker is bound to reach a breaking point where perceived quality can't override genuine financial woes from customers. Gottheil predicts the company will release a computer in the netbook class within the first half of next year, but one that doesn't obey many of the rules dictated by the industry. He sees it fetching around $599. |
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#2 | |
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Registered User
Join Date: Feb 2006
Location: Ireland
Posts: 8,565
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Quote:
Collecting my SSD iMac Fry-die. :D
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#3 | |
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Registered User
Join Date: May 2007
Posts: 982
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Quote:
Am I nuts?
"Solipsism: In philosophy, a view that maintains that the self is the only thing that can be known to exist. It is an extreme form of skepticism. The solipsist sees himself or herself as the only individual in existence...."
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#4 |
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Global Moderator
Join Date: Nov 2001
Location: Seattle, WA
Posts: 10,465
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Apple's doomed!
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#5 | |
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Registered User
Join Date: Nov 2004
Location: The kool-aid stand...
Posts: 2,189
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Quote:
With Apple having an overall small market share, it wouldn't take much to sideline their real story if the statistics are tilted in number of units or they lump a inexpensive netbook in with MacBook sales.
Hardcore.
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#6 |
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Registered User
Join Date: Jan 2005
Location: Brooklyn, NY
Posts: 5,264
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The title of this thread is set up for us to debate in this thread.
Macs don't compete directly with any particular model of PC in that way. A consumer would first need to decide if they want a Mac or a PC. Then they decide which specific model of Mac or PC they want. People buying netbooks have already decided they want a Windows notebook. The next choice is which Windows notebook. |
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#7 | |
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Registered User
Join Date: Sep 2008
Location: The West
Posts: 308
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#8 | |
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Registered User
Join Date: Oct 2007
Location: Norway
Posts: 206
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Quote:
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#9 |
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Registered User
Join Date: Mar 2003
Posts: 220
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Not nuts, but sales can be measured either in units or in money. So Apple could be increasing its share of the money, but losing share of units. That makes sense considering how cheap some of these netbooks are.
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#10 |
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Registered User
Join Date: Jan 2005
Location: Brooklyn, NY
Posts: 5,264
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PCWorld has done a similar story. The title states netbooks outsell the iPhone.
They are comparing all netbook sales against the sales of one smartphone. Netbooks still barely outsell the iPhone by itself. When it would be applicable to compare netbook sales against all smartphone sales. Where of course smartphones far out sell netbooks. |
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#11 |
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Registered User
Join Date: Aug 2006
Posts: 257
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I wonder if AI is subtly preparing us for a major netbook launch?
I mean, two news bits about netbooks in a week... |
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#12 | |
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Registered User
Join Date: Feb 2006
Posts: 4
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Quote:
Put another way, you can get a 2.2lb solid state laptop capable of running Mac OS X (and the usual Linux and Windows) for under $300. Let that sink in a minute. It's no slouch in power, either - 5 hours battery life and enough oomph to play World of Warcraft (admittedly, just barely). I've been a Mac die-hard since the mid-eighties, but portability like that is just too hard to pass up. |
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#13 | |
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Registered User
Join Date: Oct 2006
Posts: 474
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#14 | |
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Registered User
Join Date: Nov 2001
Location: Somewhere far, far away
Posts: 2,858
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Quote:
Anything can be perfectly fine so long as one's standard is lowered sufficiently. To a lot of people, a 200 dollar PC running Windows is fantastic. Anyway, the netbook market is a suicidal market. I'd love to see Apple drop its profit margins and give us more affordable products, but Apple will never do this. Even in economic turmoil. |
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#15 |
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Registered User
Join Date: Jul 2006
Posts: 530
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There will be no video iPod. Nobody wants to watch videos on an iPod.
Apple will not enter the cell phone market. Apple will not allow third party native iPhone applications. Web apps are really, really SWEET. Apple will never switch to Intel processors. Last edited by Haggar; 12-10-2008 at 05:23 PM.. |
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#16 |
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Registered User
Join Date: Mar 2007
Posts: 206
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Netbooks don't hurt Apple at all, but it is hurting microsoft & PC manufactures big time, just look at Amazon.com People are ether buying Macbooks or buying netbooks regular windows laptops are just not doing to good i think. Almost everyone start's on a windows machine by default so to see this happening is big cause Macs do cost way more money and people just keep buying them at any cost
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#17 |
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Registered User
Join Date: Mar 2006
Posts: 956
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Apple's Netbook should look exactly like a mini MacBook Air but with a 10" screen and a plastic case instead of aluminum.
It should be available in Black and White and be priced around $799. |
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#18 |
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Registered User
Join Date: Feb 2008
Posts: 1,415
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#19 | |
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Registered User
Join Date: Sep 2006
Posts: 535
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How would sales of netbooks loaded with XP hurt MS?
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#20 | |
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Registered User
Join Date: Jun 2006
Location: Seattle
Posts: 146
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Quote:
I think the current laptop models are pretty small to begin with. I guess if your desktop is literally a tray table you might want to get a netbook to save some space. I guess I see a netbook as a "luxury item" not a necessity. We can all survive without one, but it might be cool, less heavy, or more convenient to have one. Now THIS makes an Apple 17" laptop seem "netbookish" doesn't it? ![]() We've come a long way in 25 years. ![]() |
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#21 |
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Registered User
Join Date: Dec 2008
Posts: 6
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As always...
Apple will wait for a viable market to emerge first! Then, and only then, will they produce the finest netbook type device on the market. They will not outsell all other vendors in doing so, but they will make more money.
![]() Hello all! My first post! Hooray! |
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#22 | |
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Registered User
Join Date: Sep 2008
Location: The West
Posts: 308
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Quote:
Also: You could take the iPhone's innards and still have the basics of casual use (surf, email, edit docs, play music and video, book reader ). Scaling up reduces the cost to manufacture. With a netbook-sized battery, lifetimes could be huge. A single 4-pin two-way audio jack plus a single USB. Add to this a version of OSX that is closer to iPhone than adult Leopard, but can delegate processing and data storage to server-side. 9 inches width gives you full-size alphabet keys. Instant start-up, active stand-by, endless battery use, ridiculously slim and light, permanently connected, built-in back-to-my-mac, and cheaper than macbook or iPhone-parity. Last edited by PXT; 12-10-2008 at 05:28 PM.. |
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#23 |
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Registered User
Join Date: Dec 2001
Posts: 16
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So the author believes apple will put out a netbook because netbooks are shrinking apples slice of the portable market. This makes no sense, why would apple want to create a product that affect its current products sales? Apple evaluates its current products when bringing a new product to the market. If the new product will take sales from another apple will not bring that product to market.
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#24 |
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Registered User
Join Date: Nov 2004
Location: Northwest
Posts: 2,698
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Ahh the beauty of changing the market target and thus producing completely different numbers to piss on the stock traders.
Apple's Laptop market share that they TARGET is growing. You go right ahead and add in the Netbooks that they don't target and show that their portable market share is shrinking. I'll go right ahead and throw in their portable Smartphone market and show its drastically growing. Get it? It's a junk art form [not worthy of a science label] to put netbooks in with laptops. They are completely different markets. |
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#25 | |
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Registered User
Join Date: Jan 2006
Posts: 1,395
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Looks like "nascent" didn't last very longl
Quote:
Who's to say that some people decide they want a netbook and only decide on windows once they find out that there is no Mac option? It's the old "I'd buy a mac netbook (or whatever other product) but they just don't make one yet". |
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#26 | |
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Registered User
Join Date: Jan 2005
Location: Brooklyn, NY
Posts: 5,264
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An extremely small number of people are going to bother doing this. To the point its inconsequential when looking at over all netbook and macbook sales.
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#27 |
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Registered User
Join Date: Oct 2007
Posts: 13
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The author is saying that Apple's share of the combined, portable market (laptop + netbook) is declining (per unit) though its share of the laptop market is increasing: netbook sales (units) are increasing. The author doesn't state that Apple is selling more computers than last year, only that people are buying more netbooks than last year. The "who cares" to Apple is if its laptop sales decline or if it misses out on a lucrative netbook market. When Jobs worries about the latter, the iPod Touch will get real Bluetooth. (But is he willing to go up against the Newton?)
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#28 |
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Registered User
Join Date: Sep 2008
Location: The West
Posts: 308
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The adverts are kind of cute today. I wonder how they do the targeting. What shall I do today? Find love, or virtualize some servers?
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#29 | |
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Registered User
Join Date: Jan 2005
Location: Brooklyn, NY
Posts: 5,264
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Not confused at all. When has anyone directly compared sales of any particular Windows PC directly against any particular Mac. You can't make that comparison.
Its pretty elementary. You first have to decide between OS X and Windows. Two entirely different platforms which require an investment in different software. Their is nothing netbooks do to negate this choice. Quote:
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#30 |
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Registered User
Join Date: Sep 2008
Posts: 310
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News Flash!: Windows has bigger slice than Apple in the OS market
I mean honestly, do these people just come up with news just for the sake of coming up with news?
Maybe Apple is not interested in that market? Nothing to see here... move along.... |
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#31 |
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Registered User
Join Date: Oct 2007
Posts: 13
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#32 |
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Registered User
Join Date: Sep 2008
Posts: 310
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In related news, 100% of all lame articles are done by people that drink water.
Maybe they should start hitting the bars and get a buzz. The quality of their work may improve. ![]() |
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#33 |
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Registered User
Join Date: Jun 2008
Posts: 171
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Bring on the Apple Netbooks.
Oh wait....thats right I have an IPhone, already. |
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#34 | |
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Registered User
Join Date: Oct 2008
Posts: 147
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Quote:
![]() _____________ ![]()
iPhone, iPod
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#35 |
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Registered User
Join Date: Feb 2006
Location: Ireland
Posts: 8,565
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Just like the iPhone right? /Wrong
Collecting my SSD iMac Fry-die. :D
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#36 |
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Registered User
Join Date: Jan 2006
Posts: 1,395
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Says who?
My wife's PC laptop broke and we've been putting off replacing it. She's fine with getting either a PC or mac to replace it, so the choice comes down to which specific models are available. When you're mostly doing word processing and internet, choice of platform isn't always as important as what hardware is the best fit. |
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#37 |
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Registered User
Join Date: Mar 2008
Posts: 7
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Any Apple netbook should have the following to even be considered:
USB 2.0 Display-Port ExpressCard slot The MacBook Air misses the mark on being a Netbook because of it's size. Furthermore, I hope with the advent of Snow Leopard, Apple gives us some sort of Portable Home Directory system without the need to run Leopard Server for admin purposes. The lack of a high speed file transfer system between said "netbook" and a user's primary computer is why Apple won't ever be "in" on the Netbook craze. |
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#38 |
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Registered User
Join Date: Jul 2007
Posts: 10
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losing market share, gaining market share: what is the 'market'?
I'm surprised that no one has referenced jobs' other remark on this topic, namely, that they consider the ipod touch in some respects a netbook, as it addresses some of the same needs as a netbook. If one were to add in all of the iphone/touch sales as part of the overall 'portable computing segment', market share is likely growing (hence, elephant trainers and dishwasher manufacturers should both be concerned).
More to the point about apple's future products is this suggests that they may expand the ipod touch upmarket to compete in this category, rather than the macbook/air downmarket. Margins could be higher than the touch rather than lower than the macbook, and it would grow out of a product category where apple is the market leader. Analysts have latched onto netbooks as an extension of the laptop market, but that doesn't make it so. What truly defines a market, a la crossing the chasm, is the set of alternatives people consider when making a purchasing decision. In our (educational) purchasing decisions, we see netbook and ipod touch as products in an overlapping if not the same category. |
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#39 | |
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Registered User
Join Date: Jan 2005
Location: Brooklyn, NY
Posts: 5,264
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Most people are mostly word processing and internet. But you still have to make a platform choice and a usability preference. OS X and Windows are very different. MS Office for Windows is very different from MS Windows for Mac.
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#40 | |
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Registered User
Join Date: Jun 2005
Posts: 1,149
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Quote:
If your choice is to make a smaller sale or lose a sale completely, which would you pick? |
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