Revenue at a major smart phone manufacturer was $2.3 billion for the nine months ending March 2, up 85 percent over revenues for the same period last year. Management attributes the increase in revenues to a 108 percent increase in shipments (quantity demanded), despite a 21 percent drop in the average blended selling price of its line of phones.

Given this information, please calculate the price elasticity of demand and then explain whether it is surprising that the company's revenue increased when it decreased the average selling price of its phones? Please explain.