Comment Re:Not sure, if this is "news for nerds" (Score 4, Informative) 120
Sorry, but Amazon took over the market by operating at a deficit for decades. I've heard that they are still operating at a deficit, which, if true, is frankly amazing. How *do* they stay in business.
When most companies use this policy (pricing below the cost of service) the governments put them out of business. Somehow Amazon is allowed to "prosper". (I'm not sure that proper is the right term if they're actually still operating at a deficit. I know they did for over a decade, as there used to be many financial people commenting about it.)
they aren't operating at a deficit per say they make lots of money but they reinvest all of their profits back in to r&d, infrastructure, and expanding into new areas, so they make no net profit but aren't exactly at a loss either.