They would. Unless they, somewhat uniquely, have infrastructure that allows them to recoup some of those losses on the side. This is what Google and Amazon have, where they have content, media deals and infrastructure to make some of those profits on the backend. Apple and MS are probably the only other companies that could do that as well, sell at a loss and make it up later. HTC, LG, etc don't and can't. They can't become more efficient than someone willing to lose money. That's the point. They could do it, but they would lose money, which makes it a problem for the industry.WontonTiger wrote: ↑Nov 5th, 2012 11:53 amWhat about Honda, Toyota, and Kia? Would they not implode from operating at a loss for long periods of time?
They are just taking profits away from conglomerates, and this often forces companies to operate more efficiently, and hopefully trim margins off the top.
Personally, I am fine with some of them leaving the business.