There are a lot of different threads in today's links to choose from for the overarching theme. So I will just choose one and run with it. Let's look at the Amazon selling at cost issue from Apple's perspective.
What Amazon CEO Jeff Bezos told the BBC is that "we sell the hardware at our cost, so it is break-even on the hardware." This is what technology analysts have long said in analysing the actual cost of the components used for Amazon's Kindle tablets. On the other handle, Apple is just above break-even on iTunes, the software, but makes a huge amount of money from hardware sales. Separately, Bezos told AllThingsD that “our approach is our approach, and we don’t even claim it’s the right approach. It’s not something that’s new, but it’s something we’ve done since the founding of the...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.