A dermascope uses different wavelengths of light to get a picture of what's going on slightly below the skin as well as on its surface. This requires special lenses and lights, which I imagine are not used outside of this specific case, hence the cost.
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I wonder if the iPhone 5s fingerprint scanner could be hacked to produce a rudimentary system it is meant to to involve 'subdermal scanning' according to the Apple marketing department.