It doesn't fit it at all Hershel. 35% makes a lot of sense relative to sales and marketing and channel costs. 3.5X the price of components with most of that being made up in marketing and offline retailer costs is a completely different statement.
If it was online only, it could go for half the price , while offering 24% margin($6) for online sale and logistics(excluding shipping), which i believe is pretty reasonable for that market.