It is the investment in existing factories and supply chain. They invest billions into these calculating the returns over long periods of time (think 15 to 30 years). This is also the reason why we are able to afford cars. If we want new, innovative cars every 3 years the manufacturers will have to ensure their ROI over 3 years which means the price tag will go up x10.

Our world view is a little skewed because of our ability to launch software products over a weekend or release a new build every afternoon.