[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.