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Pretty remarkable strategy—sell the hardware at or below cost, and then make money on content. Of course, there's been talk of this type of business operation for years, and old-time companies actually did it. (remember free razors if you kept purchasing the razor blades?). But in the current tech era that moves so quickly, it's amazing to me that the numbers actually add up to make it possible. So all the R&D, manufacturing, sales and shipping costs are completely covered by the profit from content sales, and there's content profit left over? They must be pricing the content way over cost. And yes, we already knew that—the publishing and music industry have been making billions that way for decades. Apparently they are still making a ton of money, enough to cover hardware.
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