[jldugger]

> Would you pay Apple 10B to gain, at best, 15B?

30% APY Seems like a good deal to me!

EDIT: more seriously, you don't start with iPhone. You start outbidding Google on the margins where your budget constraint less a factor.

> On top of that, who prevents Google to pay 16B next year?

Profit margins. Google's budget is not unlimited, after all.

[scarface74]

On the margins are also where the less attractive customers are from an advertising perspective. How much are customers worth who are buying a Blu R1 HD phone for $70?

[jldugger]

Well then it's even cheaper to get started =)