$80 android phone right there. I assume that's lower margin than, say, the $200-300 iphones that Verizon sells with a 2 year contract.
Apple is culturally stuck to high margins. Google cares only about making sure Apple doesn't win and the other handset makers are used to pretty lean margins...
Androids will keep getting cheaper-- there'll be free/near-free ones out there soon.
But my point isn't the price the customer pays. But rather the price the carrier pays to HTC/Samsung. That's the money that the actual OEM makes. Those prices, if they're equal to the non-contract price, aren't that far off of the iPhone. Even feature phones are routinely $150 or so.
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"One thing I don't get though is that Android phones aren't very low margin."
http://www.verizonwireless.com/b2c/store/controller?item=pho...
$80 android phone right there. I assume that's lower margin than, say, the $200-300 iphones that Verizon sells with a 2 year contract.
Apple is culturally stuck to high margins. Google cares only about making sure Apple doesn't win and the other handset makers are used to pretty lean margins...
Androids will keep getting cheaper-- there'll be free/near-free ones out there soon.
For some reason that link doesn't work for me.
But my point isn't the price the customer pays. But rather the price the carrier pays to HTC/Samsung. That's the money that the actual OEM makes. Those prices, if they're equal to the non-contract price, aren't that far off of the iPhone. Even feature phones are routinely $150 or so.