The problem is, even if the device is priced at cost plus a reasonable margin, they can make more margin by selling data that they acquire by spying. No matter the margin on the sale, there's still more money to make by selling that data. There is no upper limit that magically prevents the manufacturer from looking for other avenues to increase profit. "Premium" device priced 3x the "reasonable" price? Still more money to be made selling data.
Now, factor in the race to the bottom on selling price, and those data sales just look that much more enticing.
You know, I’ve been thinking, I don’t think im being paid enough! Im giving myself a raise. We can do that, right?!
Companies can develop new products without your advice. In fact consumers often don't know what they want.
>people will pay whatever the price is
Then why do businesses have sales? If prices don't matter why would businesses choose to make less money per sale?