The problem with the Gilette model is, Amazon is also losing money on the razor blades, it seems: http://www.publishersweekly.com/index.asp?layout=talkBackComme

The problem with the Gilette model is, Amazon is also losing money on the razor blades, it seems: http://www.publishersweekly.com/index.asp?layout=talkBackCommentsFull&articleid=CA6657272&talk_back_header_id=6599602 http://www.publishersweekly.com/index.asp?layout=talkBackCom... I guess their strategy must be more like Microsoft's: establish market power early and milk it for the big bux0rz later.