The belief is that with China and Nokia building middle classes, there will be a gigantic market for $25 phones. Not smartphones, but just phones, like Nokia is really good at making.

Thing is, it's a telco company, they are all horrible.

I wonder how $25 Nokia dumbphones will do against the $25 Android phones that are coming (a bit more than a factor of 2 to go - we've already $50 off-contract during the right sale).

The only way they are going to make money in China on a $25 phone is if they tie it into a monthly or pre-paid plan.

Otherwise, the margins are going to be slim, non-existent, or in the red on those phones.

Because Nokia will burn through its remaining cash within two years at the current loss rate and otherwise go bankrupt - perhaps fatally tarnishing Windows as a phone operating system.

As a channel to push your phone OS, of course.

Looks like they didn't have to buy them to get those perks.