That is true - but bear in mind we dont manufacture them ourselves we contract that out. Therefore it is determined by our supplier Foxxconn. No doubt when we order 100,000 they charge us $x and when we order 250,000 they charge say 90% of X but they will be keeping some of that margin for themselves so it wont be as rapid a decrease in unit costs as would be the case if we were making them.
Given these guys manufacture for ppl like Apple - we use them to build our brand not the other way so they dont have an incentive to give us as good a deal as they would to say apple who they use for brand recog
RBO Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
