There are significant fixed costs in building a smart phone, for example in design, certifications and tooling. Building something like 50K of them is already o

There are significant fixed costs in building a smart phone, for example in design, certifications and tooling. Building something like 50K of them is already on the low end. It would be a disaster for them if they got into a position were they had costs of $1500 per phone and had to choose between bailing out or eat the losses.