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> Apple sold the original iPod for $399, which was the cost of the original 5GB drive to Apple. It was sold at a severe loss to begin with to push the technology and ramp up volume production of those drives.

I've never heard this before, do you have a source where I can read more? I've never heard of Apple willingly taking a loss on anything.

It also seems odd to me to talk about volume in an earlier era of Apple, e.g. this was when Jobs was still dead-set towards limiting the iPod to Macs (it didn't really take off until Windows support was added).



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