The biggest part of that cost is recouping the engineering and design / R&D. And that subsidizes the lower end products as that work trickles down to them. That isn't all of it - a good bit is margin, but you gotta make some money in order to keep the company going. It takes a whole lot of failures to come up with a version that works well enough to compete.You get what you pay for. The part that sucks is that if they would take the same margin for the better part, you’d probably only pay 1500 - but they have to make sure they really screw you on the high end.