The cost to produce the early models of any innovative product is almost never anywhere near the amount the market pays, & the market is not irrarional to place a higher value on a novel & more efficient solution to some real problem. When there are few options, the high profit margins are the signal that "this is the solution we want" which spurs both the innovator to expand & competitors to enter the market & bring the supply more in line with demand. Prices are an information dense language.