Of razors and blades... How Apple has managed to slice its o...

Discussion in 'MacBytes.com News Discussion' started by MacBytes, Jan 19, 2004.

  1. mrsebastian macrumors 6502a


    Nov 26, 2002
    sunny san diego
    good read and i much agree. liked this part of the article:
    "The deal was a strategic coup for Mr. Jobs, as was evident in the reaction from Dave Fester, general manager of the Windows digital media division at Microsoft, who accused Hewlett of limiting consumer choice by including Apple music software instead of Microsoft software on its PC's. Many in the industry found irony in the remark: Microsoft is typically the one accused of limiting the public's choice with its industry-dominant Windows operating system."

    this pretty much sums up why i hate m$ and why i'll never use their op sys. it's always nice to see the bully get theirs handed to them once in a while :)
  2. nickfit macrumors member

    May 31, 2003
    The author, though, mixes up the analogy. Shouldn't downloaded songs be the razor (loss leader) and iPods be the blades (profit maker).

    Nevertheless, I really do love the ironic comment by MS in response to the HP/Apple deal.
  3. MrMacMan macrumors 604


    Jul 4, 2001
    1 Block away from NYC.
    Yeah the iPod makes the money, the Songs don't.

    Anyway having Quicktime or iTunes on a PC is good.
  4. Nermal Moderator


    Staff Member

    Dec 7, 2002
    New Zealand
    No, because you buy one iPod, and several songs. The article specifically mentions that only Apple could sell the razor at a profit and blades at a loss.

    Reminds me of printer ink :rolleyes:
  5. eazyway macrumors regular

    Oct 26, 2003

    The point is correct. Usually the hardware was sold as the loss leader for the add ons. Jobs did the exact opposite.
  6. NP3 macrumors regular

    Jul 12, 2003
    Los Angeles
    Good article.

    It points out the (i think commonly overlooked) fact that with iTunes coming to HP, not only is it getting iTunes and iPod support, but Rendezvous and Quicktime installed on every HP computer.

    This is a huge help for Quicktime in its fight against Windows Media Player.
  7. irmongoose macrumors 68030


    Dec 3, 2001
    Sometimes Tokyo, sometimes California
    That's not the analogy he's using. Razor is the big thing, which you put the blades into. You buy one razor, many blades. Thus, the razor is the iPod, and the blades are the songs.

    Well, at last we see a smart journalist you knows what he's talking about write an article about the Apple-HP deal. Good stuff.

  8. Spock macrumors 68000


    Jan 6, 2002
    Are the HP-iPods shipping yet? and if not when?

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