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The argument that low margins are an indicator of inability to charge higher prices or declining brand strength doesn't hold water. Sony had had crappy margins for a long time and the reasons relate more to competition (they don't enjoy barriers to entry like Apple and have to pay up for marketing and R&D to maintain their brand perception) and poor corporate governance (lack of impetus to run the company efficiently) than an ability to charge high prices and/or a decline in brand quality.



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