pointlessdebate

Agree with you. In general, overcharging does mean the market is not fair. However, even in the presence of competition, cost is not the major factor in pricing :). Competition may drive prices down but does not eliminate greed. eg: In India (where I live), mobile services cost a fraction of what it typically costs in US/Canada. Even here, texts are priced at 5x what it costs the operator :(.

Not a defence of DRM or overcharging, and more of a statement on how pricing works in real-life.

Very few people have the time and knowledge to do a supply chain or BOM analysis before they buy anything. Hence, there is little incentive for companies to price products based on cost. Cost is a factor only when analyzing profits.

Hence, cost is usually whatever the market is willing to pay. Saying it is unethical or wrong does not change reality.

Absolutely. Thats why everyone complains about how an iPhone is priced at nearly 200% of its cost.