They can also value engineer their product "upgrades" by improving a few important specs, while installing cheaper parts elsewhere - allowing them to lower the retail price. They lower the cost of production in order to make the same profit margin despite selling the product a lower price.
sundays_sun t1_j2cln1i wrote
Reply to comment by usrevenge in ELI5 How do companies make money by selling products at a low price and competing with other companies? by [deleted]
They can also value engineer their product "upgrades" by improving a few important specs, while installing cheaper parts elsewhere - allowing them to lower the retail price. They lower the cost of production in order to make the same profit margin despite selling the product a lower price.