So there's no threat of Android, or anyone else, being denied supply, there's a wide variety of suppliers to choose from.
1. Client calls for tenders on a vaguely-defined project.
2. Outsourcing companies put in bids that are _very_ keenly priced. It's not unusual for the initial big to be a break-even, or even a loss-maker for the outsourcing company.
3. Client chooses lowest bidder - even if other bidders are clearly better-qualified to do the job.
4. Contract is signed, including a clause where any variance to the original spec is to be billed at $X per hour (typically several times the rate for the original work).
5. Every frakking thing in the contract is then gone over with a fine tooth comb, and if any part of the necessary work wasn't explicitly specified, it becomes a variance. Meetings are called with the client to discusss these variances. At every meeting there will be 2 or 3 client representatives, and 6 or 8 contractor representatives, these meetings are billed to the client at $X per person per hour. The longer it takes to agree on the revised specs, the more the contractor makes.
6. Actual work then commences. Inevitably, more ambiguities or outright bugs in the original spec are discovered. This leads to more very profitable (for the contractor) meetings.
7. When the project is half way finished, there's a change in management at the client, and the new manager feels the urge to "make his mark" by having an organizational re-structure. Everyone gets new job titles, new business cards, new reporting lines. This requires changes to the software, which requires more meetings....
The above describes an outsourcing project I worked on where the client was a large private business, where the client is government, you have a whole 'nother layer of bureaucracy adding far more opportunity for highly profitable (for the contractor) meetings.
Don't the tinfoil-hat brigade even bother to read articles before deciding they confirm their worst nightmares?
The easiest way to figure the cost of living is to take your income and add ten percent.