I’m sorry to hear yours stopped working so quickly, that really sucks!
I’ve heard about how notorious Samsung can be with their warranty policies…which is why I didn’t even try engaging with them when my S8+ got all scratched up out of nowhere.
I think that there’s a large stock of them online for cheap due to people never using theirs and reselling them, and there are also a lot of knockoffs out there.
As to your last point…well… Samsung actually owns AKG so I don’t think they pay $5 per pair.
It’s probably closer to $.90 cents or so to manufacture. ;)
I still think they’re great earphones when they’re working, and Samsung is absolutely in the wrong to not replace your broken ones. That’s what warranties are supposed to be for.