Linus misses two key points. First, Engadget focuses on tablet pricing moreso than cellphone pricing. Second, all Engadget is inelegantly saying that the lowest price for something isn't necessarily its most efficient one.
Efficient prices versus low prices will play out spectacularly poorly in U.S. v. Apple and publishers, the book price fixing case. Like with tablets, Amazon undercut the true price of books, which harms authors and publishers. Hilariously Apple and publishers did a legal "corrective action" that is precisely described in the DoJ's own guidance on anti-trust. But I digress.
I would agree with Engadget that Amazon and Google selling tablets at or below cost is unequivocally bad for the tablet industry. I'd prefer efficient prices. Otherwise, Amazon undercuts everyone, all the other tablet manufacturers cease to exist, and then they let the product stagnate.
Efficient prices versus low prices will play out spectacularly poorly in U.S. v. Apple and publishers, the book price fixing case. Like with tablets, Amazon undercut the true price of books, which harms authors and publishers. Hilariously Apple and publishers did a legal "corrective action" that is precisely described in the DoJ's own guidance on anti-trust. But I digress.
I would agree with Engadget that Amazon and Google selling tablets at or below cost is unequivocally bad for the tablet industry. I'd prefer efficient prices. Otherwise, Amazon undercuts everyone, all the other tablet manufacturers cease to exist, and then they let the product stagnate.