There may certainly be lower-hanging fruit than cell phone companies, but I don’t buy that their ‘margins are low’. With such high volumes being produced, they can’t cost all that much to make - yet they often list for $200, $300, and much more.

Sure, you get them for free or with a big rebate when you sign on for a two-year plan. Then they own you for service, text messages, downloads, etc.. Remember one of the first rules in marketing is that when you’re in the business of selling razor blades, you give away the razor. But one way or another, cell phone manufacturers are being paid plenty to produce them. It’s really quite a racket. To hear someone say ‘low margins’ makes it sound like they’re just barely eeking out a small profit. Yeah. Right.

I don’t doubt that Robert said that or that he was told that. I just don’t believe it to be true. DM shouldn’t believe it either. I could understand that getting a major cell phone manufacturer to pay might be a tall order, but I also think a lot of cell phones are clearly infringing on some of our IP.

- Sinkman