Because people are willing to pay the price point. In places I've been, rule of thumb for pricing is usually 3x BoM. I've heard (sorry no reference, just word o

Because people are willing to pay the price point. In places I've been, rule of thumb for pricing is usually 3x BoM. I've heard (sorry no reference, just word of mouth) Apple targets at least 5x. Side-note: if anyone believes the idea that companies pass savings to the consumer... Well I have a nice bridge in Brooklyn they might be interested in