Because we don't really know how much hardware costs anymore. Most hardware you buy is subsidized in one way or another through data collection, from phones to TVs. Building stuff is very capital intensive, and the world changes very rapidly. And most people don't really care about data collection because they don't understand the consequences, or they don't care at all (which I find baffling). This means you'll be always facing cheaper competition. It's very hard to keep a company like that afloat.
this is plausible (and very worrisome if really true). We are not talking about an aspirational consumer device, it is already the case that you are being cutoff from regular life / the economy without one.
Incidentaly, I don't buy the "people don't care" argument. First of all, people do care. There is massive legislation in the EU (which represents half a billion people) towards data privacy. They are not freaks - well informed people obviously care about privacy. This touches also companies / commercial privacy and states (data sovereignty etc). But it is true that large numbers around the world are dazed and confused ("don't care") as nobody credible (and holding a large mouthpiece) is actually warning them.
But if you are right and its not viable (e.g why did blackberry not survive given companies at least should appreciate privacy) it is a baffling state to have degenerated into.
A lot of very informed people do really sincerely not care. A coworker of mine (IT professional) literally told me that the fact that his phone is constantly tracking him and that he could show me his whereabouts during the last week/month on google maps was a feature.
A lot of people really, truly don’t care. Is as baffling to me as it is to you.
Because we don't really know how much hardware costs anymore. Most hardware you buy is subsidized in one way or another through data collection, from phones to TVs. Building stuff is very capital intensive, and the world changes very rapidly. And most people don't really care about data collection because they don't understand the consequences, or they don't care at all (which I find baffling). This means you'll be always facing cheaper competition. It's very hard to keep a company like that afloat.