I agree that most users don't utilize all of the space provided by any online service, although in this case what they upload is also out of their control. Typi

I agree that most users don't utilize all of the space provided by any online service, although in this case what they upload is also out of their control. Typically space utilization is somewhat hampered because users won't be bothered to wring every last bit out of it by hand. Even if we say each user only stores 10GB over 3 years, that's $10 just in S3 storage costs. Bandwidth costs for S3 can easily eclipse that if data is transferring back out to the device frequently. Even at a super conservative 10GB outbound per year, that's another $1.50. I'm skeptical that a $400 phone sold in small quantities has the kind of margin to support this type of ongoing cost over the long term. They're smart people though, so maybe they have factored all of this in.