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Old 10-26-2009, 07:18 PM   #356 (permalink)
jamesqf
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I agree, "loss leader" is maybe not the right word for introducing new technology. You lose money on the first X number of units, but hope they catch on, then you can use economies of scale to bring down the costs. Think about IBM and the first PCs: even though they were pretty pricy (about $3K in mid-'80s dollars), it took IBM quite a while to recoup their initial investment. And nowadays you can buy a far more powerful PC for few hundred, and the global market's worth hundreds of billions...
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