At 6:08 AM -0700 10/26/02, William Sommerwerck wrote:
Three important points... One: Although Kodak's camera is "manufactured"
(ie, assembled) in the US, it is still substantially less expensive than
Canon's comparable camera. Kodak is not a lens manufacturer who can cover a
loss on the body with the sale of a lens. Ergo, Kodak must (???) be making
money on the body. This bodes well for future price reductions.
Kodak may choose to be making a profit on this through the sale of
"digital film" and associated materials (photo-quality paper, etc.).
I admit I don't know Kodak's financial model for selling cameras, but
there are many manufacturers of digital products (computers,
printers, etc.) who will accept a thin margin on the originating
product in anticipation of future sales. Kodak certainly sells enough
of the "associated materials."
Steve
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