All of the above. Well #1 for sure. And they'll sell the phone for more where possible, but also play the other side by selling it dirt cheap via the net just

All of the above. Well #1 for sure. And they'll sell the phone for more where possible, but also play the other side by selling it dirt cheap via the net just to grow, so #2. And yeah, #4. We're always going to need components and without a pesky OS vendor to demand a cut HW manufacturers will either make more, or simply win through increased volume at the new low prices. I'm sure a lot of us are waiting for the entrenched interests to crumble. So #3, for sure. As the market opens up, and cheap hardware like this makes everyone a potential android developer, the high-margin players are relegated to the more clueless of their customer base as the rest are enticed away.