Unlike the iPhone, which is subsidized by carriers in exchange for a long term contract, prepaid phones are typically sold for a modest up front cost, and service is paid for month-to-month.

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There is no question that the up-front ticket price is the most important consideration today in China, not the cost per kilometer over the life of the vehicle.

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Vendor lock-in may be unavoidable at this point, but what companies need to do is understand up-front what the exit strategy will be, and build those costs into the initial cost analysis.

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Inventing a new drug may take years and cost millions, as Samuels noted, but software products require relatively little up-front investment.

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