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I have a really hard time believing that the average margin on consumer hardware is 30%. Very few companies, with the exception of Apple, can pull off that kin

I have a really hard time believing that the average margin on consumer hardware is 30%. Very few companies, with the exception of Apple, can pull off that kind of margin. As a new market entrant, you're going to have to significantly discount your hardware to attract consumers. Even established players, like Microsoft with the Xbox, sell hardware at or below cost to sell software.

asmithmd1 17y ago
That is gross margin on marginal cost of goods - not margin for the whole business. And 30% is on the low side. I would consider 25% to be the bare minimum and 50% (i.e. double your money to be good) So the rule of thumb is triple the landed cost of goods to get the retail price. Buy it for $30, sell it to retailer for $60 who sells it for $89.95 + tax and everybody is happy.