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@weezy
If you read this article you will see history of this happening.
http://seattletimes.nwsource.com/html/businesstechnology/2001828701_ptcheapdvd03.html
First the question is can electronics manufacturers cut the cost of production of a product (including materials) in half in one year. The answer is yes. It doesn't matter if you are making money or not on the product, but it is possible.