Article gives 3 main reasons why companies such as Samsung, LG, Sony, and HTC continue to make smartphones (and lose money w/ the exception of Samsung): 1. eve

Article gives 3 main reasons why companies such as Samsung, LG, Sony, and HTC continue to make smartphones (and lose money w/ the exception of Samsung): 1. every new smartphone bearing the company’s insignia serves as an engineering showcase for the various component businesses that comprise its vast conglomerate 2. LG believes it needs a smartphone to connect to its growing ecosystem of smart home, TV, and in-car gadgets, plus phones provide free and ubiquitous advertising 3. Others see smartphones as a conduit to generating profits elsewhere. Xiaomi is famous for selling phones at cost and then seeking to capitalize on a well-disposed user base by selling additional services and extras like luggage. Of these 3, the only one that makes financial sense to me is 2. For companies that are so heavily invested in connected white goods and home automation, selling a smartphone that can control a home hub at cost is akin to giving away a free remote control for a TV. It helps bring users into the ecosystem and can help guide their fridge, TV, security network, etc. purchasing decisions.