Those features aren't driving up the price; Apple is just charging a ridiculous sum for it. Those features aren't that costly on Apple's part, they just want huge margins if they can get it.
Spot on. The
BOM (Bill of Material) cost is definitely not the main factor in Apple Marketing's mind in setting the current price of ASD. Even A13* costs little to Apple when compared to ASD's retail price.
As I mentioned on page 1, Apple basically price in expected lifespan of ASD in their owners' hands. Apple expects ASD will last a long time (say 10+yrs). That means the replacement cycle will be long. 10+ yrs are so long that it's really bad for Apple's recurring revenue on ASD. So they raise the price to a point the expected number of sales and the resultant profit will be maximal for Apple. It's simple linear programming used by many manufacturers.
The second major factor in the pricing is obviously due to little
competition in 5K displays. So Apple can get away with it. I meant even Samsung is playing a similar game with their Viewfinity S9 (but obviously Samsung will discount handsomely at some point as most ppl may be expecting).
I believe the sales of ASD is way below the sales of Mac within the same period of time. In that sense, it's a
flop. Whether Apple considers it a flop or not, it's quite different because obviously Apple does not rely on the revenue of ASD whatsoever. From the % ownership of ASD among Mac users, I would think ASD is also a flop, the price point way beyond their expectation and acceptable level while the features are so little and dated.
For a proper configured ASD, the price is about $2000. Apple
Vision Pro will sell for $3500. I would say if people want to justify the purchase of Vision Pro, simply look at ASD. Personally I think it's a steal at 3500 by the gauge of ASD.
(*) Turns out it's not that unexpected for putting an A13 into a monitor. After studying my brand new 4K LG, I found my LG has three microprocessors (two at least 32-bit ARMs, another possibly 32-bit or 16-bit microprocessor), running at least two operating systems (!) I'm kinda surprised how digital we're already in.