zlacker

I'm pretty sure the margin is not low on Hue lights and switches. They are not cheap.

And surely an app can keep working with minimal updates, I don't see that as a huge expense for Hue.

>>exodus+(OP)
I had friends who worked on a very popular consumer electric device before who revealed the ugly economics of it to me.

Cost to build, around $7. Retail price, over $30. Profit for the company, around $3.

Distributors and retailers took the remaining.

Selling stuff in physical stores is a nasty business. I remember these numbers whenever I see people complain about app stores taking a 30% cut.