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If they're selling the hardware at loss, they may turn profit once sales of hardware increase. Economies of scale == cheaper components, cheaper labor, cheaper
by dexen 16y ago
If they're selling the hardware at loss, they may turn profit once sales of hardware increase. Economies of scale == cheaper components, cheaper labor, cheaper distribution. Initial development costs spread over more units. At some point network effect and referrals kick in.
- Johngibb 16y agoI should have phrased it differently as I have no familiarity with their margins. I just meant that I'm sure they priced it with future book sale revenue in mind.
- deleted 16y ago[deleted]