[twblalock]

It's easy to make cheap stuff when somebody else invested in the R&D and you just steal their designs.

[coldtea]

LOL. The R&D is an insignificant part of the cost. The margins are just sky-high because it's a luxury market, and suckers will pay anything.

[SamReidHughes]

Richemont group has something like 16% margins.

[coldtea]

What's the margin of the watch itself (factory, labor, etc vs cost) not their overall operating margins as a company?

And is that 16% margin due to "R&D" eating into them?

Or do they calculate their margins after hefty executive bonuses, lavish corporate offices, and other "expenses"? Not to mention that they also run all kind of boutique shops of their own and venture into various areas outside watches.

[SamReidHughes]

Undoubtedly the cost of manufacturing the watch is much less than the retail price. As is the case with most goods.