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I wonder when Apple's going to start subsidizing their hardware with content sales? Seems like they have the choice between doing that and losing marketshare, ulimately ending up a cult/niche offering.



Considering Amazon's recent $274 million quarterly loss, don't you think it's a little bit too early to say that their model is the best? Apple earned $8 billion in the same amount of time.

http://www.nytimes.com/2012/10/26/technology/amazon-reports-...

http://www.apple.com/pr/library/2012/10/25Apple-Reports-Four...

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I'm pretty sure they made a loss because of acquisitions they had made and not because of their competitive pricing.

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But you're still looking at an 8 billion dollar difference. Hard to argue against Apple's strategy

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Their acquisition was a big part of their loss, but they run their business with very thin margins and still would have lost money without the acquisition.

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I'm pretty sure they subsidize their content network (or run it at razor margin) in order to drive hardware sales.

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Apple can't make money, with a 30% cut, on digital content in one of the world's most popular digital stores?

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