8gb ram $80, 500gb HDD (small form factor) $60, mouse $70, keyboard $70, 802.11ac chip $70, mobo $70, i5 $315, casing, $60, display $200. all together its $995 plus design, manufacturing, advertising, and theres the price.Yes you could choose better parts or a different form factor and get much more performance, but you can see where they get the prices from.