>those would be the ones who could afford phablets Poor people are usually not that good at managing their money. That's the reason why phone companies subsidi

>those would be the ones who could afford phablets Poor people are usually not that good at managing their money. That's the reason why phone companies subsidizes the phones, not because they are nice, but because they know they can take advantage of the situation. A low earning person will rarely shell out a lump sum of $600 to buy a phone. Instead, if you offer her the option to buy it in 24 easy $30 payments she'll go for it. Some poor people are insolvent, most poor people have liquidity constraints. So my intuition is that the target of expensive phones are poor and rich people alike.