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Also it could be that they are going for the profit maximising price curve.

$129 is worth it; if you would use the functionality a lot. And they must be selling enough units at that price to make it worthwhile for them.

Without knowing their cost structure it's hard to say; if their production capacity is limited there may be no way to make enough to meet demand at a lower price.

The wiki page is interesting read http://en.wikipedia.org/wiki/Profit_maximization



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