Thread: Is Apple betting the farm on the new iPad (iPad3 or iPadHD or ?)?
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Old 03-09-2012, 07:09 AM   #165
fjtorres
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Quote:
Originally Posted by wizwor View Post
If the cost of a tablet drops to $200 then their profits are gone. iTunes is not profitable enough to support $1b in R&D plus $500 share price.
Uh, who said *Apple* was going to $200?
On the contrary, Apple's strategy of (highly hyped) annual incremental improvements is designed to maintain their high price point.

Amazon is the one peddling the low-cost pads using generic hardware to make money off content. (No big R&D costs, there.)

Let's not confuse the two strategies, okay?
Apple and Amazon can co-exist fine, but between the two they severely squeeze everybody in between.
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