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I wonder when Apple's going to start subsidizing their hardware with content sales? Seems like they have the choice between doing that and losing marketshare, ulimately ending up a cult/niche offering.

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Considering Amazon's recent $274 million quarterly loss, don't you think it's a little bit too early to say that their model is the best? Apple earned $8 billion in the same amount of time.

http://www.nytimes.com/2012/10/26/technology/amazon-reports-...

http://www.apple.com/pr/library/2012/10/25Apple-Reports-Four...

I'm pretty sure they made a loss because of acquisitions they had made and not because of their competitive pricing.

Their acquisition was a big part of their loss, but they run their business with very thin margins and still would have lost money without the acquisition.

But you're still looking at an 8 billion dollar difference. Hard to argue against Apple's strategy

I'm pretty sure they subsidize their content network (or run it at razor margin) in order to drive hardware sales.

Apple can't make money, with a 30% cut, on digital content in one of the world's most popular digital stores?

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