I think your brakdown doesnt make sense either. The housing definitely
doesnt cost them 2K! Neither the electronics 1K. Remember their buying or
manufacturing power. The 'materials' cost them much less. What is expensive
is their manufacturing lines.


What's expensive is what's called "non-recurring engineering costs." That is all of the engineering that would go into the camera that wouldn't be recouped in future models. So setting up the production line (the body castings) as well as proprietary technology. Part of the problem is that digital cameras only have a 18 month lifespan, so it's very difficult to recoup non-recurring engineering especially on lines such as the EOS-1 series where there are most probably less than 20,000 cameras produced.


Karen

--
Karen Nakamura
http://www.photoethnography.com/ClassicCameras/
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