Whilst all that ^^ is true, it is a fallacy to assume that:

Sale price = Production cost + Profit

In fact, it is the reverse:

Profit = Sale price - Production cost

This is because the producer does not dictate the sale price. The only part of the equasion that the producer can influence is the production cost. The sale price is dictated by what the market can bear. As we could see from the India launch, Jolla is quite capable of dropping the price to accommodate the market. They just had not feelt that pressure in Europe for a while.