[briandear]

And removing the mistakes made my Magic makes the derivative cost less; Magic used a lot of money figuring out what doesn’t work, money that the competing company did not have to spend. If I make an iPhone copy, I didn’t have to spend all the money Apple spent figuring out what wouldn’t work. So it’s not an apples to apples comparison.

[Retra]

They also used a lot of that money to develop a 'premium' aspirational product.