> ... my point is that it is unlikely anyone would sell a device at a loss ... Playstation 3, Xbox 360 . . . or are we just talking cell phones here? Google's

> ... my point is that it is unlikely anyone would sell a device at a loss ... Playstation 3, Xbox 360 . . . or are we just talking cell phones here? Google's source of revenue isn't just selling the phone, similarly Microsoft and Sony's source of revenue wasn't from selling the console. It's all about selling the content and getting people to keep coming back for it. Perhaps a $99 phone would be absurd for a state of the art smartphone, however making a loss wouldn't be absurd when google is making money off of every search you make, every youtube video you watch and submit.