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Old 12-29-2012, 02:22 PM   #36
murraypaul
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Quote:
Originally Posted by Kali Yuga View Post
Apple intentionally sacrifices profits from iTunes music sales because they make money off of hardware sales. For them, selling music is a loss leader -- it's a way to keep people buying iPhones and iPods and Macs and Apple.
Just to quibble, but it isn't actually a loss leader, the iTunes store does run at a profit, but that doesn't undermine your main point, that Apple run at much lower margins than they could do on content sales in order to increase the appeal of their hardware, which makes it hard for pure content companies to compete.
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