Originally Posted by kjk
Jeff Bezos said he would consider that approach if customers wanted a lower hardware cost and higher operating fees, but:
One thing to realize with Amazon-if they subsidize the hardware costs of the Kindle with book sales/book clubs/etc...they are basically using their own income (books) to help subsidize the hardware...whereas Apple is using someone else (AT&T) to pay for the subsidizing of the iPhone. And, for Apple, their iTunes and App Stores are basically a wash income wise, as a way to spur hardware sales. |