He didn't argue against his thesis. When economies of scale are that of Apple's, it can make sense for a partiular devision to lose money if it inreases the bot

He didn't argue against his thesis. When economies of scale are that of Apple's, it can make sense for a partiular devision to lose money if it inreases the bottom line overall for the company. I could see an Apple cloud increasing the likelihood that people will buy more Apple hardware if it just syncs up when you plug it in. Lets face it, setting up the Google cloud on the iPhone with Google Sync isn't something that your non-techie can pull off easily. Thinking in terms of profit per division for companies the size of Apple, while prudent, isn't looking at the big picture.