You are describing the end-user price of a device that includes batteries, a circuit board, a WiFi transciever, a switch, and an enclosure. If the BOM and assembly costs can be brought down to $4.99, that's a miraculous feat of engineering and modern civilization's economies of scale; if it can end up on your doorstop for that price it must be subsidized.
How else could that device cost less than the gallon of industrial chemistry that you order with it?
Yeah, I find it hard to believe this device could be sold for $4.99 at a profit, if you count up BOM, assembly and logistics related to sending it. But given that some posters mention Amazon actually gives you $4.99 back for the first purchase, they must not be caring.
Now a surprising thing that I didn't know before - this thing has a microphone on board. Yes. Yet another Internet-connected microphone. Apparently used only to configure the button via ultrasound, but I wonder how hard would be to repurpose it...
$2.72 for a single programmable WiFi device, delivered for free. All you need after that is a cheap battery, button, and enclosure. The existence of the ESP8266 is changing the way I think about electronics.
I don't know about that - I can pick up a ESP8266 dev board for under $5 individually on mouser - I feel like I should be able to get that cost down significantly if I am building millions. I am not an expert in manufacturing at all but it seems like I should be able get a small enclosure and battery for under $1.50 in high enough quantities.
You are describing the end-user price of a device that includes batteries, a circuit board, a WiFi transciever, a switch, and an enclosure. If the BOM and assembly costs can be brought down to $4.99, that's a miraculous feat of engineering and modern civilization's economies of scale; if it can end up on your doorstop for that price it must be subsidized.
How else could that device cost less than the gallon of industrial chemistry that you order with it?