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Loss leader and data collection play?

EDIT: it's 100% the razor model, they want the device out there so they own your interaction with "service providers"; i.e. they take a cut of everything to do. Middle men.

Presumably the optional data sim plans.

It's not much different than Sony selling PlayStations at a low price but making money off the games.

I figured it’s local llms on the device

It's not powerful enough for that, 2018 chipset -> https://news.ycombinator.com/item?id=38938330

"No subscription" definitely sounds good to get people in the door but it seems short sighted in the long run, can't be making much on $200 and the more it's used the more that margin is eaten. Presumably they will roll out a sub at some point for extra features but then you get the backlash of "You said no subscription".