> I think getting devices out is not as important as getting the software stack right.
That sounds like the perfect plan for never finishing anything. Annoying as it might be shipping beats "done right " every time.
> .... $400 to 500 for such a phone, which leaves a nice profit margin
I cannot help but thinking that you are grossly underestimating the development costs involved (but I might be wrong, it has been known to happen).