The original blog has an unfortunate line break...
At the price that Google is charging for its smartphones, there is no real margin
... which does tend to trip one's logic circuits before one's eyes reach the subsequent for error.
But I think that does raise a real issue. Google has got away with a lot of stuff I consider frankly pretty shoddy (Google Sites, anyone?) and dropping its users in the clarts with its abandoned approach to abandonware because that stuff was free (or the price was obfuscated). I don't think it has really got its corporate head around what it means to sell stuff that's supposed to last to people who are paying real money.