Xped Media Thread - Social Media, Online, Print and otherwise, page-533

Spot on.

And the beauty of the arrangement is that for the most part they are actually selling IP. Which means they don't need to manufacture the million different items they wish to incorporate their tech into. They just hand over their designs and provide some consulting services.

Not only is this allow for a rapid growth model, but it's high margins as well. Nearly all revenues will translate straight into profits. Only real costs should be wages and R&D...