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Why Is There A Basic Prepaid Phone That Costs $165?

Out of curiosity, why does Verizon sell a basic prepaid phone (the LG Exalt) that costs $165?  It doesn't even have waterproofing or ruggedness, and still costs $65 more than any prepaid smartphones that Verizon sells right now.  I'm not trying to complain, I'm just a little confused.   

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