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Android Phones Pick Up Pace

Android Phones Pick Up Pace - In the market for a high-end Android phone? Well, you're in luck – the phones are cheaper than they've ever been, and the discounts might just amount to the first shots in an overdue price war. That's bad news for Motorola and other Android manufacturers ... but chances are that Google isn't quite so heartbroken.
Why Android is a profit machine …

Thus far, Android has been a godsend for its three biggest phone manufacturers: Motorola, Samsung, and HTC. Not only is the mobile operating system keeping these companies from being laid to waste in the smartphone market by the juggernaut known as Apple's iPhone, but it's also doing wonders for the profit margins and average selling prices produced by their phone businesses. Last quarter, thanks to sales of the Droid X, Droid 2, and other Android models, Motorola reported a cell-phone ASP of $223, up nearly 80% from the $124 reported a year earlier. Even more importantly, booming Android sales allowed Motorola's phone division to go from a $183 million non-GAAP operating loss in the year-ago period to a $3 million operating profit.

Android Phones Pick Up Pace

High-end Android phones are often sold by the Motorolas and Samsungs of the world to carriers for more than $500 (before the carriers sell them to consumers at highly subsidized prices). And with teardowns of these phones usually showing that they cost less than $200 to manufacture, we can assume that they're earning a pretty penny for the manufacturers, even after you factor in other expenses such as marketing and R&D.

Android Phones Pick Up Pace


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