> Even if it does wipe out their margin from the upfront €100 cost.
That assumes what the initial price wasn't at least x20, though.
> splitting the old upfront price as if customers were on a 2 year upgrade cycle rather than 5.
It is also about perceived cost and maintenance costs: you can charge $10/y but ~$3 from this sum would go to fees and taxes, and you still need a profit margin and sustainability margin for the future growth (and recession) and to be able to give out refunds.
