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That doesn't actually clarify | 234 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
That doesn't actually clarify
Authored by: Anonymous on Thursday, November 08 2012 @ 03:48 PM EST

Subsidized products has been a concept known to the business world for a very long time. I would easily expect the concept to have been used in Rome 2000 years ago.

    Try one, it's free!
Do you honestly think the first one was free? Nope - it's a subsidized cost. Some sources for subsidizations are:
    A markup in the product cost so each unit sells for slightly more so some free units can be given out!
    Service fees: I believe RedHat can be reasonably viewed as subsidizing it's Linux development efforts by the income they receive from services.
    Other products: Some of the models of vehicle manufacturers sell for a lower price then what they cost to actually build. However, their popularity means they stay in the product line while other models of the same manufacturer subsidize the cost.
When the author says the following, he is not speaking to "what" is subsidizing the device but to the concept of susidization itself:
That bargain-basement pricing is setting some decidedly unrealistic expectations, however.
So .... 2000 years of business and marketing have had it all wrong?

I dun think so!

And please... somehow claiming Google is setting such unreasonable expectations for subsidizing costs when everyone in the telephone market is playing that game and was playing that game long before Google entered the scene:

    Decidedly Disingenuous.

RAS

[ Reply to This | Parent | # ]

Perhaps the author is in training to work for Apple ...
Authored by: jbb on Thursday, November 08 2012 @ 11:26 PM EST
... in their non-apology apology department.

---
Our job is to remind ourselves that there are more contexts
than the one we’re in now — the one that we think is reality.
-- Alan Kay

[ Reply to This | Parent | # ]

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