Believe it or not, hardware is rarely a profit leader. You almost always make your money back on subscriptions and ad revenue. Hardware is crazy expensive to make, as much as we love to look at $20 prepaid Android phones and write flagships off as being overpriced, they are taking a massive cut on hardware hoping to make it back on your service. Those prepaids are usually $150+ in actual hardware cost.
Believe it or not, hardware is rarely a profit leader. You almost always make your money back on subscriptions and ad revenue. Hardware is crazy expensive to make, as much as we love to look at $20 prepaid Android phones and write flagships off as being overpriced, they are taking a massive cut on hardware hoping to make it back on your service. Those prepaids are usually $150+ in actual hardware cost.