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Why are the app store and iphone hardware 2 distinct products? the app store is simply a feature of the iPhone product.


But by selling apps, and driving the prices of these apps low or zero, the sales of iphones goes up.

price of jelly goes to zero, sales of peanut butter go up.

prices of software goes to zero, sales of hardware goes up.

when microsoft created the PC market it took the opposite approach -- commoditize pc hardware, drive the price as low as possible -- and OS sales will go up. It worked too.;




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