If I have to guess, I think the manufacturing cost of LIFX...

If I have to guess, I think the manufacturing cost of LIFX products is around 20-25%, similar to many western products. Those shown on Alibaba website are purely the manufacturing cost. You then have to factor in server cost, app development cost, packaging cost, transport cost, retail cost, marketing cost, and profit margin. Over time, I suppose LIFX will reduce its high profit margin (~33%) to be more competitive. But the fact that they have not indicates there is currently a higher demand for their products than their supply capacity, which is expected in my opinion given their top quality. It's basic economics.