1., There is no such thing as a loss leader. If it doesn't make money, cut it. Apple TV is considered a hobby - but it is profitable. Yes, there is a grey area,

1., There is no such thing as a loss leader. If it doesn't make money, cut it. Apple TV is considered a hobby - but it is profitable. Yes, there is a grey area, but at Apple it is very small. Pretty sure Apple itself contradicts this. Afaik, the iTunes music store was in fact run as a loss leader for some time, before Apple was in a position to argue for better terms. For all I know, it might still be a loss leader (though I doubt that).