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# Mobile phone service providers make the majority of their profit from

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Manager
Joined: 24 Sep 2018
Posts: 137
Mobile phone service providers make the majority of their profit from  [#permalink]

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11 Oct 2018, 10:49
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Difficulty:

15% (low)

Question Stats:

78% (01:39) correct 22% (01:54) wrong based on 169 sessions

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Mobile phone service providers make the majority of their profit from the continued subscriptions of customers rather than from the initial sale of a phone. ComCell plans to introduce a new line of handsets that offer innovative new features, but are incompatible with the networks of other service providers, therefore forcing customers to continue with ComCell service.

Upon which of the following statements does the success of ComCell's plan most dramatically depend?

A. New mobile phone customers often buy the most popular handsets on the market.
B. The market for mobile phone service is likely to continue to expand at a fast pace.
C. ComCell's network will require extensive renovation to ensure compatibility with the new handsets.
D. Most other mobile phone service providers use some kind of technique to force customers to remain with the provider.
E. The new features in ComCell's new handset will be a contributing factor in encouraging consumers to purchase the handset.

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Intern
Joined: 13 Aug 2018
Posts: 19
Location: South Africa
GMAT 1: 590 Q47 V24
GPA: 3.2
WE: Corporate Finance (Retail Banking)
Re: Mobile phone service providers make the majority of their profit from  [#permalink]

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11 Oct 2018, 11:04
Option E , it strengthens the conclusion that the plan will be successful.

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Re: Mobile phone service providers make the majority of their profit from   [#permalink] 11 Oct 2018, 11:04
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