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As someone who've done contract manufacturing having my own auto electronics made in New Zealand, then China, the difference in profit is huge! It's like Nike who tracks their cost of production down to the 1/10000th of a penny and sells it for 9900% mark-up. There's a large range of retail-pricing for products of similar productions costs and quality.
Some of my friends produce and install home-theatre equipment. It's not uncommon for them to clear $1-mil on a single installation. I can tell you with 100% certainty that you can buy the exact equipment for 1% of that cost without their laser-etch logos.
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