Re: Seems pretty hard to make back the price of a $100 phone
Doug, you make it sound like its a crime for a company to spend it's income on expanding it's business. As though profits must be made. Why? Amazon don't hand out a dividend so shareholders wouldn't see any profit if any was made. And any profit would be taxable so a sizable chunk of those profits would go to the US treasury.
Instead that money is spent expanding the franchise which means handing the cash to employees (or people offering value added services) and supporting the huge army of business that are dependent upon the Amazon machine improving. What you see instead, is strengthening balance sheet.
This complaint about Amazon failing to make a profit was made two years ago when the 201010-K was released. At the time the stories were along the line "Amazon profit disappoints'. The stock price dropped. A closer reading of the 10-K showed Amazon investing in hardware so I bought and since the stock has risen 50%.
In the meantime the much vaunted Apple has tanked, it's stock price is among the most volatile. Oh, and though Apple makes plenty of profit, shareholders still see none of it because the Apple board doesn't want to pay Uncle Sam. Instead they invest in lawyers and tax advisers to keep cash in locations around the world. So your position seems to be: no profit is bad but shady tactics to keep cash away from shareholders and governments is good, right? Is that what you advocate?
Go read those economics text books and find out where it says it is imperative a company makes profit. Shareholders want it, governments want it, but what the incentive for a business especially one which is, essentially, family owned?
Oh, and by the way, I'm one of those who would welcome a free phone. I barely use my phone but in case my kids want to reach me or I need to make a call I have to put up with sky-high prices and a contract that doesn't get close to suiting my needs. There are millions of us. We don't wear labels, drive cars we don't need, eat at a place just to be seen or want Roll-Royce phones.