[joshuapants]

Margins in consumer electronics are typically razor thin, particularly when the device in question is a commodity (mid-tier Android phones, for example).

1.2c is obviously unsustainable, as you mention. I wonder if they got blindsided by a price increase on some part.

[johnchristopher]

How can these be razor thin and 1.2c when a trip to the local shops and the internet shows variations in the 10€ range for the same models ?

[joshuapants]

Because the price the store charges you is not the price the manufacturer charges the store.

[Avshalom]

It costs LG $10, they sell it to Best-WalGet for $10.012. the price range you see is depending on how much it gets marked up for retail.