[pbasista]

If that is the case, then there seems to be a place in the market for someone else who can sell these devices for cheaper.

However, as you have pointed out, since it is also a market where people have few choices, there is no incentive for any new player to significantly lower the prices. Even if they easily could. Because they know that they will get the customers anyway.

That seems to be the root cause of the excessive price problem. An existing oligopoly of rent-seeking companies. Or a cartel, if you like.

I think that one of the ways to disturb this market and bring the prices down is for some honest company to join it and price their products fairly.

Once there is one such company, I assume that everyone else will lower their prices as well. Because otherwise they will run out of business.

[bluGill]

The problem is if you spend 100 million dollars to make one (which is about 30 engineers, 50 testers, and 20 other for a year) and sell 10,000 units (remember there is competition who will get come sales) you need $1000 each just to pay engineering costs. Lack of scale is what makes many products expensive.