[mustyoshi]

That was an incredibly long interview for them to just say the COGS is only 100$ higher, but we feel the margin should be 1200.

[c6400sc]

There's margin (on BOM cost), and then there's profit margin (above the design cost).

Design costs are probably an order of magnitude higher in USA than in China, and can't be spread over hundreds of thousands of units. I'd bet the profit isn't that great.