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  • Jan 16th, 2010 @ 8:42am

    Re: Killer feature? Self-subsidy

    PS: Money is the ultimate content stream.

  • Jan 16th, 2010 @ 8:41am

    Self-subsidy PS

    Money is the ultimate content stream.

  • Jan 16th, 2010 @ 8:37am

    Killer feature? Self-subsidy

    Good article. Good idea. But dual screen is probably shortlived as a feature. As screen resolutions improve, dual screens go away. And Apple doesn't invest in dead end technologies.

    I think Apple needs to stand on its head and do something entirely new. Think "self-subsidy." Google does this all day long. The Tablet and the Touch, with camera, can be purchasing monsters. The Touch already is: Think music, video, audio, app. Apps! Did I say apps? Now add services. Think lattes and limos.

    Amazon must use self-subsidy: The Kindle is its best effort to create a shopping device, a 24/7 storefront. But Amazon's job in the future will be to sell atoms, not electrons. We may buy everything solid from Amazon, but digital products and services are for Apple to do.

    Typically Apple prices its hardware high and stays high. And up until now it's been absolutely right to do so. Look at how the bottom feeders like Dell are turning belly up. But now Apple has a huge content stream to use to leverage hardware pricing.

    So, sure, sell the Tablet high for the first six months. Some of us will pay anything for it. Why not take the money? But then it's time for Apple to let the pricing tiger out of the bag. Lower the Tablet to $250. OK makes us buy a subscription to MobileMe with it. (I do that anyway.) Next, lower the Touch to $50.

    And it's Katy bar the door!