And after you've invested that money another chinese manufacturer comes a long and builds a similar device for half the price.
The verb 'building' is a bit misleading here, 'selling' would be a better fit. If you manufacture cheap electronics assembly and parts are the big cost factor, but don't forget about:
- designing the thing, NRE
- QA testing during production
- Warranty/RMA
And as you mentioned above, software support.
And yes, Penang is a nice place, my wife has to travel there from time to time to troubleshoot things at their factory there. I wouldn't mind some roti canai right now