With a function lock, the company manufactures one product. The cost is identical for every unit. But they sell three licenses . The profit margin on the "Good" version is low, but the profit margin on the "Best" version is nearly 100%—because it costs the company nothing extra to unlock the features.
In 2013, Volkswagen was caught using a function lock in its diesel engines. The engines were capable of clean emissions, but running that mode reduced horsepower and fuel economy. So, VW used a software lock: The engine ran clean only during EPA testing. The rest of the time, the lock turned the clean function off . (We call that "Dieselgate," and it cost them $30 billion.) function lock
The only thing standing between you and that feature is a single bit of data—a 0 that the manufacturer refuses to flip to a 1 without payment. With a function lock, the company manufactures one product
You see, in the old days (say, 1995), if a product didn’t have a feature, it was because the feature was too expensive to include. Today, thanks to cheap processing power, most devices are wildly overpowered. Your $50 Wi-Fi router has the same processor as a supercomputer from 1990. So, rather than build three different physical routers for “Home,” “Pro,” and “Enterprise,” a company builds one super-router. Then, they use function locks to cripple the cheap version. The profit margin on the "Good" version is