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Creating good phone set hardware in low volume is costly in 2012. "Traction", in other words high volume sales, reduces cost per unit and allows companies to make a small profit. I don't think they'll be able to touch Nokia's original price point for unlocked hardware.

That totally depends on how big your operations costs are. I build and sell professional workstations, match Dell, HP or Lenovo prices (beat them in performance, which is really easy these days) and earn quite a happy living. No need to become a millionaire.

These guys will have 100 employees by the end of this year. They don't need to sell millions of phones to feed them. They might as well aim for high quality at some higher price.

Edited 2012-07-12 23:13 UTC

Software wise I disagree with your comment.

It is relatively easy to create a simple application that, don't know, access to a web service, asks for the weather of some location and returns the information in a fancy way; but it takes a lot of hands to create something like Photoshop, Microsoft Word or Skype.

Creating a platform or a complex software is something terribly complex: You need to have developers, testers, graphical designers, project managers, marketing people, translators, etc. etc.

I think the "app stores" give the common people the opportunity to publish their software and earn some money with that, but also "app stores" are the responsible of the poor quality software we see in them.

Since I was speaking hardware wise, there's not too much to disagree...

But since you insist: they will be using well established application frameworks for the market to develop apps. In the same way Photoshop is not developed by Apple or Microsoft, apps for MeeGo won't be developed by Jolla Mobile. So, sorry, I don't get your point.