The percentage of returned gadgets that have nothing wrong with them.
Of the $13.8 billion worth of returned products in 2007, only 5 percent were because gadgets were actually broken, according to a 2008 study.
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yea that's the problem, artificially low prices caused in part by theft of IP or counterfeit products, or products produced in slave states like China hurt the market in terms of high-end components because mainstream manufacturers are forced to lower the quality of their items in order to compete on price.
so what he is saying makes sense when you think about the big picture and the industry as a whole, but i do have to admit at first it does sound rather insane.