In your estimation how much of this justified cost do you attribute to R&D and how much to actual production? $600k buys plenty of castings and tooling, at least outside of the lab world.
david
PS I'm not being sarcastic, I was in manufacturing for many years and curious to see how you break down their costs. As far as the $600k goes, all the power to them if they can get it, I'm all for capitalism.
Keep in mind that in audio more than half goes to the dealer (and in case of cables, we are talking about 70%...). So Magico would receive only less than 270-300k. Bill of material makes around 180-210k (my guess). By respect for Magico I prefer not to publish the split of my estimate... as an example, just the CNC-machining of the mid horn will cost them circa 15-20k per piece (and you need 2!), it is a very deep piece, there are only very few CNC machines able to build that and their production volume is so small that they will get hammered on pricing by the few shops who can do that! And the 10 drivers alone cost significantly more than the full production cost of a pair of XLF. If you add assembly cost, shipment, cost for Alon flying over for set up at your home... you end up below 30% Gross margin, i.e., less than 90k. That's very little to pay the rent, your accountant, your people managing suppliers, quality and testing dpt, the R&D team who developed the bass and midbass drivers as well as the XO, sales & marketing, amortization of tooling...
For a reference, the large audio companies like Harman, D&M (Denon& Marantz) or B&W are barely making any money on traditional hifi (they only make money on crappy China made iPod docking stations or headsets....), and they operate at around 50% gross margin.
Bottom line, as surprising as it can be, I think that the Ultimate is more of a product statement for marketing purpose and the dream project of a guy addicted to perfection than a big money maker (or they need to sell 200 of them to get some scale effect...). There is zero cost-driven trade off being made, they just build the best speaker they can, to see what is possible in sound reproduction. Not the best way to become rich