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Asus was instrumental in launching the netbook phenom, perhaps they can capitalize that experience in the eReader market. It's evident that the margins in readers are huge. The hardware/firmware is minimal, yet prices approach those of full fledged netbooks.
Several years ago I bought a 10 inch Sony “mini notebook” for $2,000. Today a more powerful Asus eeePC 1000* costs $300! I think a 600% price reduction for eReaders would price them at just about where they should be.
I don’t blame the end product manufacturers totally for this; I think the obscene profits cross the whole spectrum of suppliers. For instance what is it about eInk screens that make them worth $90 wholesale?
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