Why the hell would you cheer about the high margins
charged on the products you are paying for?
I don't cheer high margins, but in some industries cheap medium-low quality products crowd more expensive higher quality products out of the market.
Consider inkjet printers; there are many cheap products on the market, but the consensus opinion among techies seems to be that there's no suppler with a good product.
It would be a shame if more of the technology industry went in that direction.
I'm not sure inkjet printers are a good example, although you can say that since the cheap printers flooded the market there are fewer "good" printers and they lost the economies of scale so they are more expensive.
This example is so polluted by the whole ink cartridge "sell the razor blades" business model and the legal challenges around 3rd party cartridges that I would be very hesitant to generalize from the printer example.
With that said, the kindle business model is that same model so maybe there is something to it.
Consider inkjet printers; there are many cheap products on the market, but the consensus opinion among techies seems to be that there's no suppler with a good product.
It would be a shame if more of the technology industry went in that direction.