Low-Margin Hardware

Low-margin hardware brands can’t sustain their business by only selling you low-margin hardware. They need to find other ways to generate profits, and one way is to collect your data and sell it to the highest bidder.

OnePlus runs OxygenOS, which records data:

  • when you lock or unlock the screen
  • when you open, use, close apps
  • which WiFi networks you connect to

And some more:

  • your phone’s IMEI
  • your phone number
  • your mobile carrier

Security researcher Chris Moore says with the last three data points it’s not hard to identify you. But OnePlus doesn’t seem to think it’s a problem and points out you can easily turn off the data collection (the first set of three data points), but not the second set of three data points.

Most smartphone manufacturers hardly make any money selling smartphones. With Apple capturing 80%? or more of smartphone industry profits and the rest going to Samsung, the rest are either breaking even or losing money. So how do they then make money selling smartphones?

By collecting your data and selling your data.

According to AndroidPolice, that cute smart speaker that Google came out with? Home Mini. It got caught recording everything. A defect, affecting only a small number of units, says Google. What if no one had found out? Does Google make enough money selling you a Home Mini for $50 to keep going? Probably not. The Home Mini is a cute, cheap conduit that serves up your data to its search-based increasingly AI-based ad-selling money-making machine.

Source: The Verge