Amazon, Apple, and the beauty of low margins
BMW could launch a bargain basement 0 series, or Wal-mart could start selling quality products.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.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.The low margin Apple market is craigslist, if you want a 3 year old Apple device that's where you can get it.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.