Quote:
Originally Posted by DVTimes
they may make more from the app store anyway.
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This.
Any money they lose on the actual device would be made up in the Apple app store, iTunes store, and iBooks store which all sit right there on the home screen.
It gets people into the "Apple universe" at a really attractive price point and eventually they become brand loyal, stepping up to a full-size iPad, new iPhones, Apple TV, Macbook, etc etc and buying apps, books, and music all along the way.
If the rumor is true, then they're building a potential Kindle killer. Just look at all the emphasis Apple has put on books lately.
