| Grimes said: Sony has been slaughtered by companies that don't use the loss leader strategy. Take a look at Apple which never sells its products for loss. It has generated more profit in the last five years than the entire market value of Sony. In other words, Apple has made so much profit that it could buy Sony with that profit. But it won't because Apple doesn't want Sony's unprofitable businesses. |
you know there are different ways in how different businesses and industry work
so just saying "hey look that that company,it is doing it without a loss so why can't the other one" isn't the right way to compare it
APPLE had a totally different scenario,they used their IPOD brand name to market iPhone .and talfully for them the devices were getting connected and all digital so that helped them.also the struggling cell phone market which needed a boost and didn't have anything new and cool around that time,so when iphone launched everyone hoped on the bandwagon and wanted to buy the COOL iphone
and apple became the COOL company that is just how it works
now any product it release will have good sales cause it has a dedicated fanbase
but after sometimes every company losses its coolness and people get used to it and want new cool thing so they will hop on to something else
apple never selling it at a loss doesn't have anything to do with this as their products are very cheap to make as it is,iPhone 4 cost just $185 to make. and plus they make more with AT&T contracts and exclusivity.they are ottaly different industries
and when did this thread be about SONY and APPLE profit and one buying the other,just get that shit out of this thread.you want to discuss it,start your own thread
| Grimes said: To be more on point, you don't need to sell products for a loss for them to be successful. If your product is innovative, desirable and the marketing is sound, then you can sell your product for a profit from day one and still lead the market. |
you also need to understand that different industries work differently and in gaming industry the main thing is software which needs and install base and companies tend to sell their products at a lower cost to increase the install base so more games come to their platform
if you product is innovative then it will be expensive most likely cause anything new needs time to get accepted and the start up costs are high
if your product is desirable then the consumer economics standpoint comes in as follows:
a consumer should have the wish to buy that product
a consumer should have the need to buy that product
a consumer should have the ability to buy that product
marketing just ccreates hype and cool and popular,it stays for sometime but their are alot of other thing attached to a purchase
well if your product is innovative and desired and marketed and $200 then it will sell
but if your product is innovative and desired and marketed and $1000 then it won't sell that good
consumers normally have a wish to buy products but they don't necessarily need it so they spend their money on other needed things and the also the most consumers don't have the ability to buy that products as in they do not have money so they don't buy it
this should tell you how soceity works and it just isn't that the best device sells most
