Is reducing smartphone prices the way to sustain profits?

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"As mature markets become saturated and worldwide growth slows, service providers and device manufacturers are seeking opportunities to move hardware wherever they can. The result is rapidly declining price points, creating challenging environments in which to turn a profit. Worldwide smartphone average selling price (ASP) was $335 in 2013, and is expected to drop to $260 by 2018."

From IDC


Would it not be better to focus on offering newer and better services?

*also, Blackberry prices do not correlate with the IDC report so take some of it with a grain of salt

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