The margins on software and services are many multiples greater than consumer electronics hardware. If they make $20 net revenue per phone sold just imagine if

The margins on software and services are many multiples greater than consumer electronics hardware. If they make $20 net revenue per phone sold just imagine if they can make another $20 net from revenue shares by way of Dropbox, LogMeIn, and other ancillary bundled services. That secondary $20 would double their net per phone which would be transformative for their business. Additionally, services create data and service lock-in as users move from older devices to newer devices if their platform makes migration within the HTC brand seamless.