Yes. To put it simply, there is a non-empty set of people that will pay a large sum of money for something, simply because it requires a large sum of money. To

Yes. To put it simply, there is a non-empty set of people that will pay a large sum of money for something, simply because it requires a large sum of money. To this market, the lack of features or battery life, etc is not a concern. The price of the good itself, and therefore it's perceived exclusivity, is the paramount feature of the product. This non-empty set of people have no qualms about upgrading every few years to a new, more exclusive model. Nothing is worst than having something "old" or out of fashion. This non-empty set of people, will pay $10k, $15k, $20k+ for something just because they can. Example: http://financesonline.com/top-10-most-expensive-champagne-bottles-in-the-world/ http://financesonline.com/top-10-most-expensive-champagne-bo... Fashion, watches, etc is even more extravagant because the element of "freshness" and being "in style" plays into a constant need to invest in the latest.