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Apple was much more aggressive about pricing on the iPad than they have been on other new products in the past. This has made it harder for other vendors to undercut Apple on price. However, I don't think B&N is actually loosing money on the Nook Color so it is clear that a 7" android tablet with good hardware need not be very expensive. What seems to be distorting the price of "high end" Android tablets is the carriers. They like high off-contract list prices so that their on-contract deals sound better than they really are. They also don't like WiFi-only competitors. Unfortunately, all the major manufacturers (except Apple) have to listen to the carriers to some extent. B&N did not have this problem, and they have their own stores to sell the devices. I am hoping Samsung, or perhaps Sony, will break from the pack and sell tablets with more reasonable price margins soon.
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