BartC wrote:

maybe they don't need 1080p mpeg decoding support, and
they could have saved a few quid of licensing to these Broadcom people
or whoever supplies that technology.

The ARM, RAM and GPU are within a single Broadcom "SoC", the main Pi
designer works for Broadcom developing GPUs, I think this has already
"saved" them a lot, their human costs have been in time, rather than
pounds, but I'm still surprised they can produce it for £22.