I wonder if the cost isn't mostly due to manufacturing labor. A good look-over by someone experienced in Lean production might help them map their value streams and get the cost way down.

I suspect part of the reason they're going high-tech with all the IoT devices is so that they can sell a lot of these domestically for profit, and thereby subsidize the ones they send overseas. Not necessarily a bad idea. And if they can get the owners/users to form an online community and capture some learning, the more the better!