Absolutely John

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The Oh-So Beautiful Profit Minting Devices that Phablets Are

OK, yes, I said it: Phablets.

Are you satisfied?

Yesterday, I almost bought a Nokia Lumia 1520, a large-format smartphone, commonly called by the infernal name, phablet.

However, at the last moment, I balked.

Why?en-INTL_PDP_Nokia_Lumia_1520_ATT_Black_CYF-00147_Large

Simple: the cost.

Listen, this Thanksgiving weekend 2013, I can purchase a brand spankin’ new Microsoft SurfaceRT device for $199.

At the same time, I am being told that I should pick up a Microsoft (Nokia) Lumia 1520 large-format smartphone from AT&T for the low-low price of $99 w/ a 2-year contract, ETF attached.

If I want to purchase the device free-and-clear of a contract, the cost is $599.

Meanwhile, the everyday price of a SurfaceRT, which, by all indications, is a superset of Windows Phone, is $399.

Now, I am no up on component costs, but I can bet that the cost of materials for the Lumia 1520 is less than that of the SurfaceRT box.

Well, not unless cellular radios cost a couple of hundies*!

Since that is true, then you can now see why the mobile telcos are so enamored with large-format smartphones: the profits, and the ensuing lock-in.

That, is impressive.

Resultantly, despite the delectable phone, the gorgeous screen, and the impressive Windows Phone OS, I passed on the purchase.

The math just doesn’t work for me.

*Hundie =$100 US

© 2002 – 2013, John Obeto for Blackground Media Unlimited

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