Quote:
Originally Posted by Serpentine
You're failing to understand, there's no money in the hardware side of things, if they charge a premium it's a dead product (if they cant crack the business/specialized market), if they charge the same as the next guy - they make next to nothing (and never get taken seriously by business). Do you think companies take risk with extra product lines for fun? No, they expect to be able to get a good return. If they don't know the water very well, they release a single line, maybe 3 models with different memory. Once they figure out that there's no money there, they leave the game and go back to producing goods with far more reasonable margins, where they can make money outside of the initial consumer sale.
Same thing with readers, look at the smaller players, none of them can compete with the bulk hardware pricing that Amazon/B&N/Sony can get, specially since they can risk a few % on getting book sales, pure hardware guys can't unless they go into the specialized market (and stand a good risk of dying there too).
|
You hit the nail on the head my friend. That's basically what it is.