Originally Posted by sxr71
Thank Grado for all of this nonsense. They've proved that with the right marketing (hype) to the right group you can charge $1400+ for things that cost about $20 to make. Now everyone is pushing these crazy prices. Beyerdynamic just released theirs and I fully expect that AKG will follow.
Come on let's keep this in the realm or reality.
There is no way these would cost $20 to make unless Sennheiser was selling an obscene volume of these. These are not a commodity item that is mass produced in quantities that could offset the non material costs. Even on commodity items the prices don't drop until the R&D, capital, and tooling costs can be offset.
There is far more than the material costs to produce these.
With the number of components in these phones there must be a huge investment in tooling.
Investment in R&D
Marketing and other sales and administrative costs.
I'm sure there is a huge mark up on them, but I'm also sure Sennheiser isn't making money on them yet.