[jasin]

The juxtaposition between hardware being the loss-leader over software, and vice versa, is interesting. The article states that "clearly one model is working and one isn't". I'm not sure if this is really the case. For example, in the games console business, the devices were loss-leaders for a long time, but at least Microsoft is now doing more than OK with its Xbox business - granted it took a while to get there. So, over time, loss-leader hardware isn't necessarily a bad strategy.