I agree with everything except the above statement. The calculated cost for the components in the 16gb wifi unit was under $260. **That was way back in APRIL, which is forever ago in technology pricing. Apple is making HUUUGE profit margins on the iPad (as well they should, and more power to them!!!)
I'd disput the "huge" profit margins. Bear in mind that component costs doesn't even BEGIN to tackle things like labour, distribution, advertising, maintenance, replacements, and a hundred other minor things BEFORE you get to "profit." Apple's pure "profit" on an iPad is probably more like $100-$200 per unit, around 20-30% of the purchase price, in line with their average markup on all their lines (around 30%).
But there's another way to prove my point: when was the last time Apple dropped the price on an item within a year of bringing it out, or without seriously revamping it?
I've been following Apple for a very long time, and I can recall exactly ONE instance of this: the original iPhone (and look at the CRAP they caught for doing that!). Not a path they are ever going down again.
What Apple *tends* to do is increase the VALUE over time rather than bump down the price. They add physical features to new versions, and enhance the older hardware through software. That's why Apple customers love Apple so much; very often their hardware investments get BETTER over time instead of WORSE. I'm still using my original iPhone, my 2007 laptop runs better than it ever did, and iPad early adopters are about to get a big xmas present called iOS 4.2.
So my contention stands: an iPad price drop is NA GA HA PEN.
Maybe that 7" "My First iPad" Fisher-Price version the rumour-mongers fixate on will prove to be true, but the one that's out now will be "starting at $499" for the life of the product IMO.
