[wmf]

Once you consider ~30% retail margin and ~30% gross margin for Dropcam themselves that only leaves a COGS of ~$75. That's not particularly overpriced.

[throwawayacct10]

I see it now. Thanks very much.

But isn't 30% a lot of margin in hardware? Even software companies nowadays have problems with that margin.

[wmf]

Gross margin is used to pay back your NRE, so net profit is lower.