Exactly! Just like how those same companies are not paying for the data, they are donations!

(I jest of course, I have no idea if that's happening. My point is one about evaluating behaviors of companies in spirit and not just on technicalities)

I'm more cynical. I think they are pulling a page from Walmart in an attempt to pay less in employee benefits and unemployment insurance. Just like the other companies that abuse part time status, people will be pressured into working more than part time off the books.

Boss :"Sorry Bill, but we're going to have to let you go. You are the least productive team member."

Bill: "But... but... they all work 50 hrs a week!"

Boss: "Thats not what their time cards say. They are clearly working 30hrs a week, same as you."

You wouldn't understand. It's a Jeep thing.

I doubt there was little if any NRE (Non-Reoccurring Engineering) costs involved in the construction of these iPhonies. The price alone strongly suggests the most likely explanation is that the Chinese manufactures making the genuine iPhone, are running their production lines on the side, without Apple's consent.

Apple has handed them the specifications and all the manufacturer has to do is build a few thousand more than what Apple orders. The bootleg manufacturers don't even have to pay for things like molds or automation setup costs. They then fill in any missing pieces (such as software or mute slider switches) with the cheapest thing they can get.

You probably would be surprised at how often this happens with consumer goods built in China.