Numerous assumptions are being made here. The main point is: How do we know these phones are not being sold at a loss? Carphone Warehouse could be selling them cheap, knowing that more likely than not, the buyers will purchase a mobile contract at the same store, which they can profit on. Or they should be selling on the expectation that the buyer would eventually be dissatisfied with the phone and go back to them to buy a more expensive one. Or they could be clearing out stock.
