A high margin luxury good with huge r&d costs is a death spiral.
A high per-user r&d means high costs per user. So then users leave to save a buck, qnd the price goes up again for the remaining users.
Maybe it works out OK if you want to signal wealth - the high price is the selling point. But luxury pure utility is a hard sell to consumers, and for luxury B2B it's about high touch sales (e.g. Oracle).
A high per-user r&d means high costs per user. So then users leave to save a buck, qnd the price goes up again for the remaining users.
Maybe it works out OK if you want to signal wealth - the high price is the selling point. But luxury pure utility is a hard sell to consumers, and for luxury B2B it's about high touch sales (e.g. Oracle).