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Well, I guess I didn't state my point well. Yes, of course there is little guarantee that a company will pass along cost savings, but competitive pressures tend to make that happen over time.
Therefore, over time, if you have a slipping cost price, that has got to show up eventually in lower sales prices and lost dollar volumes for the same levels of activity.

A comparison: Lets say that every 18 months for 40+ years the cost of producing socks falls by 50%. At some point everyone just has too many socks, regardless of what the fashion mavens say & do. At that point socks sales dollar volumes would have to fall. Great management could not overcome that simple economic reality.



DennisRootes@xxxxxxxxxxx wrote:
You say something that is unclear to me.
Lets say Moore's Law is still in effect, which seems to still be the case.

What is the effect of a 50% drop in revenue per transistor, every 18 months, over a couple of decades? Doesn't there have to be a point where increasing sales can no longer be sustained?

I don't understand? Why would a cheaper manufacturing cost of transistors slow iSeries sales? If anything, if it was cheaper to manufacture IBM should be able to sell more units at a reduced cost by passing the savings on to the customer. Personally, I think what has killed sales is the perception of the platform being a dinosaur, and IBM's constant rebranding of things to the point that even if the customer wanted to jump onboard he doesn't even know where to start.

I love the 400, it's a good, solid, dependable platform and writing RPG is a breeze. Interfacing to the non-IBM world is a little tricky, but doable. I do my part, I tell anyone who asks what I do that I work on the best platform in the world - unfortunately, 90% of them have no idea what the AS/400/iSeries/System i is. I think it's about time for IBM to do their part and sell, sell, sell the damn platform until the next time someone asks me what I do, and I say I program on the iSeries, that person tells me how he's heard so much good buzz about it that I must be a lucky man indeed! =)



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