Memory and storage are always margin padders for a simple reason: the average user cares about the benefit provided, not the raw cost. There isn't a single OEM

Memory and storage are always margin padders for a simple reason: the average user cares about the benefit provided, not the raw cost. There isn't a single OEM I can think of that doesn't do this. Heck -- go buy a server from Dell or HP. You want to see margin? There's some crazy fantastic margin. The user looks at a storage upgrade as "I get twice as much for X". They don't break it out to $ per GB, and they don't start to compare to low volume wholesale (i.e. NewEgg) component prices. Automobiles are very similar, especially the higher end you go. Though even for family sedans, the "cost" of a V6 over a four-cylinder in a family sedan isn't several thousand dollars. Even if you include upgrades to the transmission and the rest of the driveline, the raw cost doesn't come close. It's tasty front-end margin, plain and simple, and I can't think of many people who complain about the cost per additional horsepower. The cost to produce 19" wheels over 18" wheels on a Porsche Boxster isn't anywhere near the extra $1560 they charge you, but if you want stiffer sidewalls, it's what it's going to cost straight from Porsche. Trim levels? Trust me, a V12 sedan doesn't cost 50% more than a V8 sedan, regardless of interior upgrades. There's a lot of pure profit built into top-trim levels of models.