They're not in the middle.
Consider them as two businesses. One is manufacturing (Iridium manufacturing, satphoneshop), which takes a margin on manufactured goods.
The other is Zoleo, which makes a margin on providing the unit as a service. In order to get the unit out there, they incentivise retailers by reducing their own margin and increasing retail margins. This is why retailers can run all these special deals, but still make good coin.
As this second business unit grows subscription revenues, margins grow nicely. They're spending big on pushing the product through EU/UK/US/AU/NZ/CA. I don't think they're half-assing this part.
If you removed the 2nd business from the first, I think you'd find this is on < 10x earnings. On current pricing, you're getting Zoleo for free at a minimum.
They're not in the middle.Consider them as two businesses. One...
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