Amazon, Apple, and the beauty of low margins
BMW could launch a bargain basement 0 series, or Wal-mart could start selling quality products.<p>Fundamentally there isn't much point for either because it's not the right customer base. This is what branding is about, if Apple acquires a whole bunch of customers that don't care about quality and then complain that their devices don't have half-baked features it doesn't do the brand any good. These customers will destroy the brand.<p>I don't want to have to walk into an Apple store and wonder which is the low margin device that will fall apart / fail to perform, if I wanted to ask those questions I'd go to Best Buy.<p>The low margin Apple market is craigslist, if you want a 3 year old Apple device that's where you can get it.<p>The most confusing thing about AMZN and APPL are their respective PEs. They are priced as if each are going to adopt the other's business model.