I think its somewhat common, and even occasionally successful: Amazon prime costs amazon money, and the original fire tablets were sold at cost - i suspect the

I think its somewhat common, and even occasionally successful: Amazon prime costs amazon money, and the original fire tablets were sold at cost - i suspect the new 50$ tablets are not very profitable either Walmart has commonly been accused of this practice for various products Google's original Nexus 7 tablet I believe Apple ended up losing money at least a quarter or two on the app store/itunes Granted there are few examples, but its certainly prevalent enough that its a legitimate business concern - the bigger disparity is that it takes a pretty enormous size for a company to succeed in such a tactic, I doubt turing has the kind of capital to lose that the likes of Walmart, Apple, Google and Amazon do.