4 ms·
David Carr has an agenda here, which is the preservation of the old order of media. As a result of this blind-spot, he makes some logical leaps and mistakes. M
by yahelc 15y ago
David Carr has an agenda here, which is the preservation of the old order of media. As a result of this blind-spot, he makes some logical leaps and mistakes.
Most egregious amongst them is suggesting that Amazon's strategy is akin to Apple's, which is profiting off of devices.
Except, Amazon sells the Kindle at a loss; it treats it as a loss-leader.[1] They reportedly take a $10 loss on every Kindle Fire, and a $5 loss on every $79 Kindle.
[1]: http://www.pcmag.com/article2/0,2817,2396248,00.asp http://www.pcmag.com/article2/0,2817,2396248,00.asp
- orijing 15y agoJust curious, isn't selling below cost called "dumping" and is illegal in many places?
- cdash 15y agoI am pretty sure dumping is only considered for international trade where an item is exported at a lower cost than it is sold domestically. Another example of selling below costs, is in the console industry where Sony and I am sure other companies as well have sold consoles well below their cost and make up for it with game sales.
- DaveMebs 15y agoIt's illegal to sell below the cost of materials, I believe. Cost of assembly does not factor in.