[kevincox]

> companies are paying much more for the materials

They are paying more for materials but less for manufacturing costs and overhead. The total cost is less. So by your logic consumers are paying less than before.

> keep the consumers hooked by charging a smaller recurring amount

Yes, I disagree with the subscription model. I am talking more about one time payment for a hardware-locked feature.

[screamingninja]

> They are paying more for materials but less for manufacturing costs and overhead

I suspect this is a complex, wicked problem. What about the marketing costs, subscription management overhead, and the ensuing PR damage?