Linked by Thom Holwerda on Mon 22nd Aug 2011 21:19 UTC
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Member since:
2006-01-01
Most products retail for at least 10-20 times the manufacturing cost.
Those $500 phones almost certainly have a unit manufacturing cost of
You do understand that the reason why HP is getting out of the TouchPad and the desktop PC business (which they currently dominate) is because the margins are like minuscule (5% at best).
Sure, premium clothing and accessories might sell for 10-20 their manufacturing cost but consumer electronics never had these type of margins.