Comment by hinkley

If you’re trying to sell a product to the masses, you either need to make it cheap or a fad.

You cannot make a cheap product with high margins and get away with it. Motorola tried with the RAZR. They had about five or six good quarters from it and then within three years of initial launch were hemorrhaging over a billion dollars a year.

You have to make premium products if you want high margins. And premium means you’re going for 10% market share, not dominant market share. And if you guess wrong and a recession happens, you might be fucked.