Ultimately, android devices (at least those from Google) don't need to generate 
a profit- Google uses them as a means to steer consumers to the services they 
provide that DO generate profit (just like Amazon does with the Kindle). Some 
of the other handset makers and app developers are just out of luck. 



IDC data shows 66% of Android's 81% smartphone share are junk phones selling 
for $215

IDC reported 251.1 million smartphone shipments for Q3, reflecting 40 percent 
year over year market growth but an implosion in Average Selling Prices,...

Source: 
http://www.appleinsider.com/articles/13/11/12/idc_data_shows_66_of_androids_81_smartphone_share_are_junk_phones_selling_for_215.html

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