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johnsobas said:
They take much bigger losses on the 40 gig (same with the 20 gig) but they will probably only supply 1 40 gig for every 10 80 gigs.
Note that the 40G Model is about production batch number 4 or 5. I estimate the production costs of a 40G model to around $380 (-10%/+5%, depending on certain assumptions). So in Europe, this model already sells at a profit in many countries (in Switzerland, sales taxes are 6.5% and the model sells at $530 in shops, so the profit is actually quite high on this one).