I’m not sure where you are, but I’ve worked in retail quite a lot of years. Where I am, now:
*R&D is paid for at some point
*Shipping is probably more expensive now, but is normally not that expensive
*Retail stores pay a flat rate per item, less in bulk
What is expensive:
*Venture capitalists
*BoD, large share holders
*Marketing (contained once brand recognition established)
*C-suite
*Real estate
R&D is a really big one though. It’s a very high price for smaller volumes of phones but as soon as you get into the bigger quantities you can save on R&D (per model) and pocket the rest as profit.
To me it makes a lot of sense that privacy phones cost more, even if you could at most shave $100 off the price with selling data. It’s economies of scale.
I’m not sure where you are, but I’ve worked in retail quite a lot of years. Where I am, now:
*R&D is paid for at some point *Shipping is probably more expensive now, but is normally not that expensive *Retail stores pay a flat rate per item, less in bulk
What is expensive:
*Venture capitalists *BoD, large share holders *Marketing (contained once brand recognition established) *C-suite *Real estate
R&D is a really big one though. It’s a very high price for smaller volumes of phones but as soon as you get into the bigger quantities you can save on R&D (per model) and pocket the rest as profit.
To me it makes a lot of sense that privacy phones cost more, even if you could at most shave $100 off the price with selling data. It’s economies of scale.