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I figured Google would try to use their ad-powered business strategy to lower the profit margin to near-zero or negative rather than competing against netbooks.
by watty 15y ago
I figured Google would try to use their ad-powered business strategy to lower the profit margin to near-zero or negative rather than competing against netbooks. Didn't PS3 sell hardware for much lower than cost to manufacture?
These things would sell like hotcakes for $200 and Google would grow in users and advertising revenue. I was just surprised that they're selling near netbook prices considering they're limited devices and tied so tightly into Google Services. I don't see them disrupting the mobile device industry with Chromebooks unless they decide that # of users is much more important than profit per sale.
- MatthewPhillips 15y agoGoogle doesn't price these Chromebooks, they only price their business/education rental program. I don't know why it's hard for people to believe that Samsung and Acer have control over their own products.
- eli 15y agoI wonder, how obnoxious and intrusive would the ads have to be before they earn back $150+ of revenue? Not sure I'd sign on to that.
- tomkarlo 15y agoManufacturers price consoles below cost because most of the revenue will come from game sales (which they license rights to)... getting a chunk of $60 transactions is much more lucrative than trying to monetize with ads.