> iPods - same way the Xbox is sold at a loss (about $100 at this point)
> since MS is banking on people buying a number of games, which will put
> the total amount revenue per consumer into the black... in theory :)
The problem with that is, the RIAA is profiting from an intangible good that
is infinitely reproduceable, while Apple is stuck with a limited market of
hard goods that cost them money to produce. At some point, there will be a
limit to how many people they can sell iPods to. And then you have companies
like Dell and Sony creating their iPod spinoffs that don't require iTMS.
Ultimately, as the article suggests, Apple will be left holding the bag. It
gives them a potentially profitable, but apparently very short term business
strategy.
-Kevin
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