ahhh I know the strongarm processor cost $5 in bulk

Ermmmm... try $55 in the quantity we were buying. If you increase to 10,000 off the price goes down to $25 - bargain! You can't get StrongARM's for $5 anywhere, in any quantity.

Do you also know that the internal and external wiring looms cost $56, the metalwork wasn't cheap, it goes on and on.

That 30% margin then has to pay for a development team, customer support team, offices, overheads, marketing, etc etc etc. Nobody got rich.

Rob