2) Acquiesce in the academic unit segment, allowing Bose to attain an estimated 32% share of the portable speaker market at the current 17% margin (also leaving headphone margins unchanged at 6%). In both situations, we expect total market size to remain constant. Academic purchasing is not susceptible to large fluctuations in the purchasing cycle. Sales quantity would be higher if there were a price war, of course, but you can ignore that complication; I have other people thinking about that and I want you to focus on the big picture strategy of/nthe price war or not if Bose enters.

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