Yea, cost is only one factor, but if its high, the bottom line, which is the HQ line of defence for pricing strategy, will be high too. Brand competition for NIKON should be similar in SG as with the rest of the world. Market spending power, as of yesterday's news on the paper, SG Manager has lower spending index than HK, but their pricing is still lower than SG...Thats why I am think that the bottom line plays an important part for SG cam's pricing...but then again, pricing can take on the 薄利多销 strategy...really depends on the Marketing guys from Nikon SG lah...