The 'race to the bottom' has already fallen far below this price. I bought two 7" tablets recently, one for US$89 and the other on sale at US$79. Both run ICS. Neither are content-locked although both had the Amazon Appstore app pre-installed rather than Google Play. (I installed the Google Play app & it works fine with it-so the content, while 'directed' towards Amazon isn't locked to it.) Neither has an ebook reader app or a video player app pre-installed. For me, this isn't a problem. For the average tablet buyer? I suspect that the bottom-line price of a tablet will depend on what they pre-install. Obviously the hardware isn't very expensive.
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