I think the idea would be something along the lines of scale, and locking down an untargeted market. A sort of long-term plan, maybe hoping to corner a huge (greater than 1 billion) population of folks whose families might one day be targetable by ads for purchasing things and are already inside the ecosystem, or merely pulling a 1$ profit off a 35$ dollar phone... times 1.2 billion sales. I mean pie in the sky but I don't think "these people are poor" means there isn't money to be made.
There's also government social welfare contracts to consider, or good faith agreements with a government that allows you to corner a more profitable market (you provided five hundred thousand affordable phones to our people, so we'll let you lay fiber through our country / get through our Great Firewall / whatever).
> I mean pie in the sky but I don't think "these people are poor" means there isn't money to be made.
Yea, but you don't "bet the company" on it if the opportunity is smaller.
Firefox OS was not a "bet the company" project. Mozilla is financially very healthy.
If Mozilla was targeting the market for cheap, crappy phones, they were also targeting the search market on cheap, crappy phones. Unfortunately Yahoo, Bing and Google, the companies who comprise nearly all of Mozilla's revenues, need access to extraordinarily rich markets to justify their bids. It's not clear to me that they'd be substantially better off if the Mozilla phone was considered a success.