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Why is the price alot more than it cost to manufacture it?? The expense is easy to calculate. Don't think the cost of assembling the product is all that should be factor into the final price of the product. It take Engineers/Designers (60,000-100,000/year salary) to implement and test out the features. Not to mention QA department. Applications for patents, lawyers to make sure you don't mess with othe company IPs, etc. And in addition, markups from resellers (middleman) so they can profit. Why does LCD/Plasma prices comes down really fast in price? Simple answer also. Supply and Demand. LCD/plasma sale figures is magnitudes higher than projectors. I know ALOT of people and only a handful of them owns a projector while most of them have 2-3 flat panels at home. It's no point in building a $50million dollar factory to manufacture a lower volume, low profit product. Most likely the R&D are done in-house, and manufacturing the product is outsourced to China/Taiwan. And of course they have to back-calculate how much money they have put in R&D and in advertisements, etc. It is important to continue researching and having the technology in place just in case the technology gets hot and everyone starts buying it.
Not only that, projectors are not as out-of-box friendly as flat panels and rear projectors. Often times they require a dedicated room.