1., There is no such thing as a loss leader. If it doesn't make money, cut it. Apple TV is considered a hobby - but it is profitable. Yes, there is a grey area, but at Apple it is very small.
2., Your company runs on money, not market share. This has to be the focus. How can you guarantee the constant influx of enough money? Satisfied customers pay more, pay more often. The quick buck loses you money long-term.
3., Focus. You can't manage hundreds of products. you confuse your customer. Do a few things and do them extremely well. Makes it also easier to market, analyze, etc.
1., There is no such thing as a loss leader. If it doesn't make money, cut it. Apple TV is considered a hobby - but it is profitable. Yes, there is a grey area, but at Apple it is very small.
Pretty sure Apple itself contradicts this. Afaik, the iTunes music store was in fact run as a loss leader for some time, before Apple was in a position to argue for better terms. For all I know, it might still be a loss leader (though I doubt that).
1., There is no such thing as a loss leader. If it doesn't make money, cut it. Apple TV is considered a hobby - but it is profitable. Yes, there is a grey area, but at Apple it is very small.
2., Your company runs on money, not market share. This has to be the focus. How can you guarantee the constant influx of enough money? Satisfied customers pay more, pay more often. The quick buck loses you money long-term.
3., Focus. You can't manage hundreds of products. you confuse your customer. Do a few things and do them extremely well. Makes it also easier to market, analyze, etc.