Comment by skeeter2020
9 hours ago
unless the startup has gobs of free money how can they do this against an incumbent? note: nobody has gobs of free money anymore, except the incumbents. Startups competing on price is typically not a winning strategy, unless they have some technical advantage that shifts the price curve; subsidizing a move on it doesn't work.
It's the latter for us. We have healthy margins even at this price point. So we don't actually need a lot of money to do this against incumbents.
.. Don't you think it suspicious/sounds too good to be true? A newly created product space with insane margins, and easy to compete in?
Easy to compete+huge margins -> lots of competitors who compete on price -> commotidization -> lower margins -> not good
haha, the inevitable cycle of capitalism.