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Are they capable of selling hardware loss leaders indefinitely? If so, can they do it at a scale that matches the company's digital presence? The Google Daydrea
by ryukoposting 3y ago
Are they capable of selling hardware loss leaders indefinitely? If so, can they do it at a scale that matches the company's digital presence? The Google Daydream headset sitting on my shelf is skeptical.
Regardless of whether they can sell the hardware at a loss forever, they probably won't need to.
Third-party hardware is engineering labor that Meta doesn't have to pay for. In fact, it's engineering labor that will pay Meta through royalties. Cost-cutting measures developed by those third parties can easily be copied by Meta's own product, reducing the cost of future versions of the hardware. Cheaper options in the marketplace also help Meta gain market penetration without their own hardware developing a reputation for poor quality.
After a couple generations, vendor lock-in will start to set in, and they'll be able to charge more without losing customers. The aforementioned cost-cutting techniques start to pile up, too.