I think the Ultra exists for two reasons:
1. It's the mid-price model of the new Droids. $300 for the Maxx is offsetting for a lot of people and the $99 Mini may feel too small or lacking on specs. If a customer is caught between the Maxx and Ultra, the $199 price point might make a huge difference for a sale.
2. The Moto X is $199. Compared to the Ultra, I think 9 out of 10 customers will choose the X. It's a better design without the slime. Plus, you retain all of the dope features of the Droid line and add customization (soon).
In essence, the Ultra pushes the average consumer to either go big (Maxx), grab the X, or settle for the Ultra. Any of these choices is a win for Verizon because of contract lock-in.
Posted via Android Central App