I think what he was saying was that they don't lose money but rather a small portion of profit. Say Apple sells these things out to resellers at $700. They could sell it for Apple price at $1200 and make $500, or sell for $1000 and only make $300, but sell twice as many laptops, effectively making more money.
I'm sorry but you are very misinformed on Apple pricing. I'm not picking on you but using this opportunity to explain the way Apple does things.
I know for a fact that back when the first couple of generations of iMacs came out, the $999 iMac cost the retailers, independent resellers and CompUSA $949. Apple sold Keyboards and mice much cheaper to them, so that retailers could make some cash selling accessories.
Apple does NOT sell $1200 retail price laptops to Microcenter or BestBuy for anywhere near $700. I would estimate that $1000 - $1100 at the cheapest. The goal of Microcenter and BestBuy selling Macs for below Apple Retail is to encourage people to come to their stores, then buy additional accessories. Printers usually have 100+% markup and laptop cases have even more of a markup.
There's a reason that Macs aren't sold everywhere, Target, RadioShack, etc...
The only people who really make profits by selling Macs is Apple, hence their giant cash reserve of about $80 Billion. (of course a lot of that is from iDevices, but the same business principles exist.)
Also look at Apple's profit margins. For sake of an example., let's estimate Apple makes 30% margin on the $1200 MBP.
Is that a 30% margin in regards to the $1200 retail price or the $1000 price of selling to Microcenter, BestBuy, etc.....? Or an Average of both?
Is it a gross margin or profit margin %
If it's on the sales to resellers for $1000, then that means that it costs Apple $700 to make each $1200 MBP. Regardless of which margin % scenario and which sales price scenario, these $1200 MBP cost Apple $700 at the very least, maybe up to $200 more.
Remember that these are not the plastic Dell and HP laptops with 2009 and 2010 processors that sell for $500. Nothing against those companies, they just have a different business model, targeting price sensitive consumers, both individuals and business. As we have recently seen, HP wants to get out of that business because the 10% or less profit margin. Especially since the PC industry is not growing at the rate is was for the past 15 years.
Sorry for the rant
