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Interesting article. It basically cover loss leaders. Not news, but perhaps it was to apple. HP gives away printers to sell ink. Safeway cuts the price of b
by mathattack 15y ago
Interesting article. It basically cover loss leaders. Not news, but perhaps it was to apple.
HP gives away printers to sell ink.
Safeway cuts the price of bananas to 30 cents a pound so you'll buy overpriced oranges.
It appears the same with Amazon and the Kindle.
It's possible to make a great product, but lose money with poor strategic positioning. What makes Apple so much money is they nailed BOTH the product and the business model that allows them to make money.
It seems clear the business model mindset is there to stay. Will the product revolution continue? This is one reason the P/E is closer to that of a more mature company.