Re: Cost of development
No. The final price you sell something at does not include R&D. Any R&D, zero. Nothing technical about it. If it did very few people would be able to afford even the most common household things like shampoo, much less consumer tech. The money is gone the same way utility bills go.
It's not optional. The funds are gone, never to return. You have to replace those funds with incoming revenue, so it should be fairly evident why R&D is unpopular.
My entire little empire is built 100% on the fact that internal R&D is a massive NRE and you can't amortize it. But if you pay 3rd parties to do the expensive R&D for you, those costs are amortized across the lifecycle of the product and recovered in the sale of the product.
As recently as 20 years ago my company simply could not have existed at the size it is now. Internal, cloaked R&D was considered crucial to remaining competitive. That's no longer the business case. Now all that R&D is done by specialty companies like mine and we're responsible for creating and keeping the secrets of how something is made. That's why our facility looks like a prison. We've got everyone's secrets locked up inside.
The last 10 years have seen just crazy growth as everybody gets on the 3rd party R&D train. A mature company could do their own R&D for 4,5,6x, or more, cheaper than having me do it, but then they'd have that huge expense on their books and the income hit because the funds were forever gone. I can charge so much for my services because those costs are ultimately picked up by their customers (you're welcome) instead of being absorbed by investors.