There are two significant pieces (in addition to the cost of manufacturing) to
a new product's cost: R&D/engineering and tooling. What Nikon appears to do
(from my spectator's perspective) is to amortize the bulk of those costs in the
first year, or so, of sales (the price of their equipment drops). There are
enough folks who "can't wait" for the price drop that they can manage to do
this. Another factor is that some of the R&D cost winds up getting spread
across more than one camera when the technology is reused on following models.
If you don't recoupe your expenses somehow, you go out of business.
--- Aaron Reynolds <[EMAIL PROTECTED]> wrote:
> It's not on the physical production that they are losing money -- they
> are not manufacturing the camera at a cost of $200 and selling it for
> $195 -- but the R&D that goes into something like the F5 is pretty much
> unrecoverable at regular selling margins.
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