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How Do You Like MobileMe For Free?

sanziro.com

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Re: How Do You Like MobileMe For Free?

#11
post #4

I have wondered if this was in the cards for a while now. I have had trouble reconciling it with a few things though. On one hand, from a competition standpoint, there is an argument to be made that google is providing free cloud-based sync for all users. Therefore, Apple needs to be competitive with them. However, Apple rarely (never?) releases products as loss leaders. They are always interested in breaking even or…

I see it sort of like the free support at the Genius Bar--it helps keep Mac users being Mac users. Plus tying their future platform to iTunes is unsustainable in a world where everyone else will be cloud based.

Re: How Do You Like MobileMe For Free?

#13
post #4

I have wondered if this was in the cards for a while now. I have had trouble reconciling it with a few things though. On one hand, from a competition standpoint, there is an argument to be made that google is providing free cloud-based sync for all users. Therefore, Apple needs to be competitive with them. However, Apple rarely (never?) releases products as loss leaders. They are always interested in breaking even or…

>Apple rarely (never?) releases products as loss leaders

Ever heard of the iTunes music store? Minimally profitable and repeatedly referred to as a driver for iPod/iWhatever sales rather than a profit center. Without the iPhone's popularity, the same concept would apply to the App Store as well. When announced, it was directly compared to the music operation, and not expected to make any measurable impact on the bottom line.

This analysis (though obviously flawed by Apple's own sales data release policies) largely backs up these statements: http://seekingalpha.com/instablog/255967-timeline-strategy-c...

Re: How Do You Like MobileMe For Free?

#14
How would you like an already painfully slow service to be even slower? The rumor that this is based on has no credibility.

And even if it were free, I'd still avoid it like the plague, because there are better offering's out there, most of which aren't mostly tied down to an OS.

This is unlikely to happen, unless Apple becomes a mobile service provider which is likely a bigger possibility.

Re: How Do You Like MobileMe For Free?

#15
post #13
post #4

I have wondered if this was in the cards for a while now. I have had trouble reconciling it with a few things though. On one hand, from a competition standpoint, there is an argument to be made that google is providing free cloud-based sync for all users. Therefore, Apple needs to be competitive with them. However, Apple rarely (never?) releases products as loss leaders. They are always interested in breaking even or…

>Apple rarely (never?) releases products as loss leaders Ever heard of the iTunes music store? Minimally profitable and repeatedly referred to as a driver for iPod/iWhatever sales rather than a profit center. Without the iPhone's popularity, the same concept would apply to the App Store as well. When announced, it was directly compared to the music operation, and not expected to make any measurable impact on the bott…

>Ever heard of the iTunes music store?

That was the whole point of my post. Lots of companies would be tempted to operate something like the iTunes music store at a loss, since it would be seen as driving sales (a marketing expense if you will). For example: Amazon has is known to sell a significant number of ebooks at a loss to keep prices low to drive Kindle sales.

My understanding from everything I have read is that Apple at least breaks even, and may make a small amount of revenue. They do not lose any money on the iTunes store. If there is going to be a free component to MobileMe, they are going to try and generate profits from it somehow.

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