You idiots should stop funding Chinese mining farm.... seriously you think you can beat them?
For every S4 sold, it will fund 5x S4s for their farm.
Bullshit.
I don't believe for a second that Bitmaintech is making a huge profit on every miner they sell. Guy from Spondoolies, who knows a heck of a lot more about other manufacturer costs than you do, said that Bitmaintech's margins are very, very low in the post below.
https://bitcointalk.org/index.php?topic=521520.msg8516387#msg8516387A bit of simple math proves that he is correct. A S3 currently sells at .58 BTC, which is ~$264 at the current BTC price of $455. Bitmain has non recurring costs for engineering and development, labor costs for assembly, facility overhead costs, material costs, taxes, and shipping costs. After everything is said and done, I would be surprised if they make a 10% profit on each S3 sold.
Bitmain is making their money by selling a lot of miners with a really low profit on each one.
I honestly don't know how bitmain makes money. The hardware and labor is relatively inexpensive. Probably around $50. But the international express shipping is the killer. Retail price to ship the s3 from china to usa is around $200. I am sure he gets some discount but how much lower can he get? Probably make $50 for each unit sold.
Folks we are close to the break even point now for the 20/28 nm. I foresee many hardware companies cease to operate if the price remains depressed and difficulty continue to go up at 10% a clip. Sit back and watch history unfold.