Comments on: Apple TV a loss leader? http://minimediaguy.org/2007/06/25/apple-tv-a-loss-leader/ studying the media ecosystem Sun, 24 Jan 2010 06:39:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Deep Cuz http://minimediaguy.org/2007/06/25/apple-tv-a-loss-leader/comment-page-1/#comment-27770 Deep Cuz Tue, 26 Jun 2007 13:54:09 +0000 http://minimediaguy.org/2007/06/25/apple-tv-a-loss-leader/#comment-27770 While they're for some unknown reason not an integral part of my diversionary lifestyle, I recall reading about how much Sony lost with each of their PSP's (http://www.engadget.com/2006/11/16/sony-losing-mad-loot-on-each-ps3/)...much like cell phones which are sold at or below cost, where the real dough is in the service. During a recent visit to the Coast Guard Exchange I happened to notice a small but new iPod display. Knowledgeable of what these devices cost I made a remark to the manager of how closely the Exchange prices compared to Wal Marts' (e.g...$248.88 vs. @249.00). She reminded me of the fact that unlike WallyWorld I wouldn't be paying any sales tax, but more interesting was her confession of how little profit there was in these popular iCons. "We make maybe a buck or two on a typical iPod sale". Maybe it's price fixing, as I've not seen *any* kind of 'deep' discounts on them, but I can't imagine Apple making that much of a killing on 99-cent songs...especially since they don't offer nearly as many accessories bearing the familiar fruit on the label. While they’re for some unknown reason not an integral part of my diversionary lifestyle, I recall reading about how much Sony lost with each of their PSP’s (http://www.engadget.com/2006/11/16/sony-losing-mad-loot-on-each-ps3/)…much like cell phones which are sold at or below cost, where the real dough is in the service.

During a recent visit to the Coast Guard Exchange I happened to notice a small but new iPod display. Knowledgeable of what these devices cost I made a remark to the manager of how closely the Exchange prices compared to Wal Marts’ (e.g…$248.88 vs. @249.00). She reminded me of the fact that unlike WallyWorld I wouldn’t be paying any sales tax, but more interesting was her confession of how little profit there was in these popular iCons. “We make maybe a buck or two on a typical iPod sale”.

Maybe it’s price fixing, as I’ve not seen *any* kind of ‘deep’ discounts on them, but I can’t imagine Apple making that much of a killing on 99-cent songs…especially since they don’t offer nearly as many accessories bearing the familiar fruit on the label.

]]> By: » All About Apple TV - Apple TV a loss leader? - AllAboutAppletv http://minimediaguy.org/2007/06/25/apple-tv-a-loss-leader/comment-page-1/#comment-27702 » All About Apple TV - Apple TV a loss leader? - AllAboutAppletv Mon, 25 Jun 2007 23:33:56 +0000 http://minimediaguy.org/2007/06/25/apple-tv-a-loss-leader/#comment-27702 [...] play. Let’s see if The Steve can do it again with TV as he did with music and the iPod. … Read More… This entry was posted on Monday, June 25th, 2007 at 11:00 pm and is filed under Uncategorized. [...] [...] play. Let’s see if The Steve can do it again with TV as he did with music and the iPod. … Read More… This entry was posted on Monday, June 25th, 2007 at 11:00 pm and is filed under Uncategorized. [...]

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