Does anyone remember Digital Equipment Corporation? I worked for DEC in the late 70's (fortunately for a short time). DEC made some outstanding hardware at the time and was the darling of the "Mini-Computer" world. I had the misfortune to work in their only product line that dealt directly with the end user, the Graphic Arts Product Line. We sold text entry and editing systems mainly to small and mid-sized newspapers.
It was an interesting experience, to say the least. Our three main competitors were Harris, Hendrix and CSI, for whom DEC was their OEM. Because DEC was the OEM, DEC service people serviced their hardware. The four legs of the sales stool were value, hardware, software and service. Our competitors had the same hardware and service, their software was superior and somehow through OEM agreements and pricing, they could undercut us in price.
The newspaper business is very interesting. I quickly learned that newspapers are not really competitors in any major sense and they are more like a fraternity. If we had a troubled installation in Indiana, the news would quickly spread to Kentucky, Ohio, Illinois and Michigan. I recall making a sales presentation in Kentucky and things seemed to be going very well. I was getting good and penetrating questions and there seemed to be a level of interest. Then one of the people raised his hand and said, "You ain't talking about that system they got in Columbus, Indiana, are you?" Unfortunately I was so I had to try to recover but I could see the lights going out in peoples' eyes and others looking at their watches. It was time to go.
You might be wondering how this relates to this thread and I will tell you. We were selling systems for between $750K and $900K that could not do what this $500 laptop I am using can do, faster and more reliably!