I wonder when Apple's going to start subsidizing their hardware with content sales? Seems like they have the choice between doing that and losing marketshare, ulimately ending up a cult/niche offering.
Considering Amazon's recent $274 million quarterly loss, don't you think it's a little bit too early to say that their model is the best? Apple earned $8 billion in the same amount of time.
Their acquisition was a big part of their loss, but they run their business with very thin margins and still would have lost money without the acquisition.