The margins on software and services are many multiples greater than consumer electronics hardware.
If they make $20 net revenue per phone sold just imagine if they can make another $20 net from revenue shares by way of Dropbox, LogMeIn, and other ancillary bundled services.
That secondary $20 would double their net per phone which would be transformative for their business.
Additionally, services create data and service lock-in as users move from older devices to newer devices if their platform makes migration within the HTC brand seamless.
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The margins on software and services are many multiples greater than consumer electronics hardware.
If they make $20 net revenue per phone sold just imagine if they can make another $20 net from revenue shares by way of Dropbox, LogMeIn, and other ancillary bundled services.
That secondary $20 would double their net per phone which would be transformative for their business.
Additionally, services create data and service lock-in as users move from older devices to newer devices if their platform makes migration within the HTC brand seamless.