The mobile market is going to continue to grow for the foreseeable future. Getting in on the ground floor and "breaking-even" whilst getting a foothold in the market and building customer loyalty doesn't seem like a bad idea.
How'd that work for pc makers? Their profit margins have shrunk from low to near-zero (>2.5%)[1] This is in contrast to Apple who has had healthy margins and have consistently improved market share nearly the last decade.[2]
In the electronics business, unless you are significantly differentiated there there isn't much customer loyalty to be had.
Yeah, but the Galaxy is a line that avoided the fate that's being reported. The question is: do people have that attachment to cheap HTC and LG phones?
I have an attachment to the Nexus series, but again that's obviously not in the same "tier" as the cheap HTC, LG, and even some bottom-of-the-line samsungs.
People are easier convinced to upgrade to a slightly better HTC/LG in the future, because "it's the same phone, but better". I understand the strategy.
