The cost of the digital industry is not as high as you think, because the cost of some low-end digital products is really not high, such as the headphones you usually use. We don't deny that high-end headphones do have a better experience, but it makes sense that high-end headphones are expensive to make and expensive to sell, but the cost of an earphone bought online by your mobile phone accessories store is basically a few dollars. Because it has only a small speaker except a wire that can transmit signals, there is nothing else, no patented technology and no content. There are enough patented technologies for headphones made by those big factories, and the sound quality of headphones is really much better, so people sell them expensive.
In the past, the mobile phone industry was a profiteering industry, but now the mobile phone industry is not so good. In other words, at the earliest time, the cost of the old-age mobile phone we used was tens of dollars, but we could still sell it when we sold it. Hundreds of dollars, which means its profit rate can be almost 300% or even higher, so many people rushed into the mobile phone industry. At that time, when there were no smart phones, there were not so many patented technologies. There are many mobile phone brands. Think for yourself. Now those brands may have disappeared. Although the profit rate of mobile phone industry is not so high now, it is only superficial.
How do mobile phone manufacturers calculate their profit margins now? The data he released to the public means which manufacturer is using this screen? What is the market price? So what is the market price of this chip? But do you think the market price is really the same as the price he bought? Individual users buy so much money, so the supply price of such a big company can't be the same all year round, so the profit rate of 10% 20% is only nominal, but in fact it earns more than this.