Quote:
Originally Posted by fjtorres
Predatory pricing is about selling below cost (buying market share/power) and *then* raising prices. "Buying" market share with low prices and keeping them low is perfectly legal. And since Amazon did and does make money at ebooks, Apple could've matched them and still make money.
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Bold mine: That is the problem there. Could Apple realistically have expected to match ALL prices and make money or at least break even? If they stay low with prices by price matching Amazon ad infinitum they can still end up losing money while Amazon makes money. Unless Apple turns into a part charity (
) they would have given up. They smartly said that they weren't trying to compete on prices since prices are going to be the same. They knew they didn't know how to compete on prices, because profit margin wouldn't have been guaranteed. And because they knew nothing (still don't) about selling books.