2 ms·
Have you any examples of this happening? Because every experience I've seen points to sweetheart deals (such as android + spotify) but internal teams have to pl
by maccard 3y ago
Have you any examples of this happening? Because every experience I've seen points to sweetheart deals (such as android + spotify) but internal teams have to play by the normal rules.
- deleted 3y ago[deleted]
- lotsofpulp 3y agohttps://www.wsj.com/tech/ai/ais-costly-buildup-could-make-early-products-a-hard-sell-bdd29b9f https://www.wsj.com/tech/ai/ais-costly-buildup-could-make-ea... >Individuals pay $10 a month for the AI assistant. In the first few months of this year, the company [Microsoft] was losing on average more than $20 a month per user, according to a person familiar with the figures, who said some users were costing the company as much as $80 a month. Who knows if Apple is earning a profit on its Music + Classical Music apps or whatever else it bundles into its products. Maybe they consider it to be a small enough loss to offset the chance that a customer buys an Apple One bundle, which then makes up for the loss because the margins on cloud storage are much higher.
- smugma 3y agoApple is known for insisting on a positive margin on its individual products. $59 Siri Remote, $179 Apple TV, etc.
- ffgjgf1 3y agoFor physical products, which makes sense. I can’t imagine Apple TV+ was (or probably still is) at all profitable (especially considering how low the monthly fee was and all the promotions at the beginning).
- smugma 3y agoTV+ is a good counter point. Apple is going into content creation, which has huge upfront costs. Streaming music is not like streaming TV.
- maccard 3y agoTheres a big difference between allowing a project to run at a loss over the short term (the article says first few months of this year), and using a different business vertical to allow an unprofitable venture to proceed.