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Old 07-08-2010, 04:34 AM   #9
Melkor
Edge User
 
Quote:
Originally Posted by walt526 View Post
Fair enough. But that contradicts your original post when you claimed ...

They won't be making any profit if they're selling more units, but each of the units at a loss.
You cought me here

My answer would be... I don't really care if they make a huge profit or a small one. As long as eDGe is too expensive, they're not going to make any.

And I do agree that they can't be selling with a loss. They're not a charity. But selling even with a zero turnover will be profitable!

Why? When/If they sell eDGe without any profit, they still:
1) win over competition, as people will have eDGe rather than anything else in their pockets.
2) this puts forward Android and Android apps which in turn enhances eDGe on the market.
3) customers with eDGe will be buying apps and books and magazines and God knows what else via entourage store!

And there is nothing better than a devoted customer. It works for mobile phone providers. They give you an expensive phone for next to nothing, and you 'repay' them by small continuous cash flow over the years.