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@Mores: Are you being facetious? You have an iPhone so you should know how quickly Apple dropped the price on that device, much to the irritation of early adopters. From $599 for an 8gig model at the end of June 2007 to 1/3 less at the start of September to $99 for a 3g model in June 2009. There were many news stories about how early buyers reacted to that price drop. That may impact whether Apple does the same thing with the iPad but I hope they repeat since I plan to hold off at least until late summer.
@Scion: Apple has a huge advantage in having nearly all hardware locked-down so they know exactly how a unit will act under any given circumstance. PCs are a hodge-podge based on looser standards and the BSOD just reflects how even a slight change in hardware can cause unpredictable problems. Despite that I stick with PCs because that occasional problem is better than paying a lot more for a mac.
As kjk noted, production costs don't reflect development costs so it's not likely we'll see iPads in the sub-$250 range for a year or two. Once they've recovered the R&D costs they may drop prices long enough to finish off any remaining competitors.
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