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To: Doren who wrote (168356)4/12/2014 11:58:46 PM
From: Ryan Bartholomew  Respond to of 213176
 
Investors however... could lose a lot.

I should have been more specific. I meant that if Amazon can sell the phones at cost (including marketing, all else), then they have nothing to lose. Any additional Amazon sales that stem from their use would translate into profits, but if they get none, they still break even. Same idea Google has with some of their products. No need to make money on the hardware... they just hope that the devices lead to more use of their services/ads and profits come from there. Apple makes money from services/apps/media/accessories, etc. too, but not enough to keep the business thriving if hardware profits were zero.
China has made significant inroads in producing servers, routers, computers, hard drives, phones. Other Asian companies are making chips, solid state memory, screens...
Which specific brands with notable market share are you suggesting are low quality (in keeping with your auto analogy)?