Exactly this.
But it is strange, when you know exactly the total cost of your product, when changing the final price, means:
-Cost changes on daily basis
or
-Markup on cost changes purposely on a daily basis
I cannot believe that their cost changes on a daily basis.
I think it is most probable that they decrease their markup daily.
I cannot understand , though, this strategy.
The cost of an iphone is 10 usd per piece that is what apple paid foxconn.
The bulk of the 199-10 = 189 is in paying for marketting gurus and r&d engineers.
Are you sure you're not thinking of the iPhrone, made by Grapple? Because an iPhone definitely doesn't cost $10, and they don't charge anyone $200 for it. $200 is pretty much their cost.