Maybe they'll sell them to those cheapo prepaid plans? At any rate, that thing looks like a phone i'd give my kids
Those prepaid plans are very popular in many countries around the world. You answered your own questions. You want your kids on a $100/month contract? No? That's why they need an iPhone that's cheaper unsubsidised.
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Well they know where those cases are being manufactured right? Not like they just say someone come make this case for us and let us know how much we owe you.
Do you have any idea how many people are involved in producing these things. We are talking about a lot of people. As we speak they probably have a production line in China churning out these things in the millions ready for launch.