Don't know about you but I tend to abort apps download or mail push when on an edge network. If you provide a slow user experience to first time users they won't get hooked the way you anticipate, they may very well get frustrated. Customers have long memories. I also would not assume that the upsell will go to the same phone provider.
Well, it may not be a "super phone", but it is more than what a feature phone offers, and given the price, it really lowers the barrier for entry. Plus, once you get consumers hooked on apps, they will never want to go back to "dumb" phones again... so the next phone can be an upsell.
40$ smartphone! Would like to see the cost split component wise. If I am not wrong, the display and battery alone will be 10-20$. that leaves just 20-30 for entire board and rest of the components + shipping & logistics.
Wow, will it affect the business of MTK? Bloody price war again in smart phone will finally kill some more phone makers who can only build "me-too" product. Finally people can't make any money from the hardware!