Cheeky Goat, you seem to have some issue with SmartXX chips costing what they cost. I don't get what you have against SmartXX, and I certainly don't want to stop you from blowing off some steam if you have your reasons.
However, when it comes to pricing products and services, especially new ones, I do have some small experience. You always go with "The Law of Least Regret".
As the seller, what will you regret more? Selling it low and then going, "Damn! I could have got a boatload of more money per item!" Or selling it high, and then going, "Damn! Too few people are buying my product!"
In other words, your cost to produce something and its selling price are not connected in any way. It's ALWAYS, what are people willing to pay? SmartXX charges what it charges. Not being privvy to their books, I presume the people at SmartXX have answered this fundamental question for themselves.
The "Law of Least Regret" is only adjusted by market forces. If a competitor appears in the market with a competing product, it's usually accompanied by that competitors own version of said law. Maybe they have a better product for the same or higher price. Maybe they have a cheaper version and go after volume sales. It's all worked out in the marketplace.
I hope this helps.