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Re: No Country For Old Men - Walt and Everyone

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Re: No Country For Old Men - Walt and Everyone
by Andrew Kimery (adkimery) on Mar 25, 2008 at 7:04:19 am

By "loss leader" I don't mean that pro apps are crappy "freebies". I mean that Apple willingly takes a loss for each copy sold because they (the pro apps) move hardware which is where Apple's margins are. Just like the iTunes Store wasn't designed to generate a profit it was designed to sell hardware (iPods and AppleTVs) that generates a profit. It's the old "give the razor away but charge for the blades" business model.

Obviously I don't have access to Apple's books, but I just don't see how Apple could sell FCP, Cinema Tools, LiveType, Motion, Color, DVD SP, Compressor, and Soundtrack Pro for $1299 and generate any sort of meaningful profit. Apple's SOP seems to be buy existing software and then drastically reduce it's price (Shake, Color, DVD SP, LiveType, Logic, etc.,.).


-A



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