Quote:
Originally Posted by pilotbob
I think the smallest hard drive version of the iPod has always been around $250. Each release they bump up the capacity and features of that base (now classic) model. For example, I have a gen 4 which has a 20gb drive and monochrome screen that cost me $250. The new gen 6 iPod classic now has a 120GB drive, a color screen that plays movies and games.
|
Okay, my numbers are a bit off.
Still that sounds a fair amount like what Sony's doing with their prices -- the newest model is the price of the old one when it was new.
I also feel it should be noted that Sony has no control over the cost of the most expensive component in these devices: the display. That's PVI's call.
Loss-leading is a strategy that works well in some markets and not in others. Books are rather a smaller industry than video games, and Sony isn't really even trying locking us into their bookstore -- the multiple formats and the new epub support are evidence of that. Even Amazon's Kindle,
the single most locked down reading device available, isn't loss-leading, and Amazon knows quite a bit about the subject ... how many years did they operate before they first showed a profit?
I guess what I'm saying is: pineapples to kumquats.