SPONSORED LINKS
it always amazes me when people think they know how to price things. I note that Randy Whittle is in the graduate school of business, so no doubt you understand pricing, but just because *you* are willing to buy the TV tuner at $400 and not $1000 is NOT a measure of market elasticity, and of course you have no idea what the devlopment costs or even the cost of manufacture is. " The 1 Gig Hard Drives I've seen are small, 3.5", less-than-1/2- height little items. Furthermore, they go for the $350-ish you mention." So what, there is a HUGE difference between a 9 mm 2.5" disk and a 12mm 3.5" disk (like a factor of 2). So that means that density wise, a 1.2 gig 2.5" disk has the same technology as a 3.5" 3 gig disk, and not suprisingly, they are in the same ballpark price wise. As a consumer, you may think in dollars/megabyte, but the manufacturing cost and design difficulty is related to the density of information, notthenot the size of the platter. There is a huge demand for these 1.2 gig disks at the (very reasonable) price that IBM is asking, and I would guess that they can sell all of them that they can make.