A brief illustrative comparison:
• Creating complicated and totally specialized software and hardware from scratch for a limited purpose (can’t extract additional value from R&D expenditures)
• A single product category with no backup revenue streams
• Assembling in a very regulated and well-paying Swedish manufacturing environment
• Paying employees in a very regulated and well-paying Swedish business environment
• Huge revenue from massive sales of bread & butter MI products allows the more niche products to sell with lower sales volume and profit margin
• synth products are not only built on pre-existing R&D and comparatively uncomplicated software, but also benefit from decades of product hype, market pricing information, and market buzz from “legendariness” and rarity.
• the ability to use the same parts across hundreds of diverse products allows for insane cost reduction by volume purchasing
But to address the original question: I think it’s the engineering manpower more than the raw materials costs. I could be wrong.