Originally Posted by edisonwu
I was told long before Senn makes its profit a big portion from low-fi market, like portability earphones. We need to look deep into its corporate strategy before making the proper argument here. BMW may still be making lots of profit from 6 series, who knows.
They're probably making a profit on each unit produced no doubt. Whether they recoup the costs involved in the design etc. through sales volume is another matter. But which is more profitable; the 6 series line-up or the 3 series line-up. I would gather the latter, just due to sheer volume. Of course I don't have any numbers, and I'm just using it as a general example.
My point was that companies will bring out higher end products and services to satisfy a niche market. There are consumers that are willing to buy the product, but they're not as many. It's a matter of prestige, branding and product placement rather than just pure profitability.