12-06-2007, 03:18 AM
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Mystic
Join Date: Sep 2006
Posts: 1,608
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Quote:
Originally Posted by jm
Maybe, but it seems like Apple's and MSFT's business models are different. According to Cringely (about a year ago or so), iPods make the money, iTune downloads break even or so. I've never noticed the massive price reductions of iPods as we've seen lately with Zunes (but maybe I've missed them). On the other hand, MSFT has a reputation for settling for minimal profits on hardware so that they can sell subscriptions in this case at Zune Marketplace.
So comparing numbers won't necessarily be meaningful. Would MS 'win' with higher numbers if it were losing money on every Zune sold? (I'm not saying that it does, but surely those $80 Zune 1s are not making a profit.) Only if enough of those buyers are willing to pay $15/month.
JM
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Sales of the devices are still critical are they not? You need a reason to visit Zune marketplace. Speaking of the massive discounts on Zune v1's, are they cannibalizing v2 sales?
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