Apple has had a consistent iPad strategy of dominating the high-end market, forcing competitors into the low-cost, low-profit end. A $250 iPad would divert the company's resources toward a low-end, low-profit product, damaging the Apple image. Their profits in the 1st Qtr. of 2012 were $13 billion, double their profits from a year earlier, while iPad market share rose from 54% to 68% while Android market share fell during this same period. (http://www.dailytech.com/Apple+Cont...roid+Tablets+Trend+Downwards/article24608.htm) I believe Apple already makes 80% of the profits in the tablet market, although they don't have 80% market share. This essentially means most other tablet makers are selling near cost or at a loss and losing market share. I don't mean this as an indictment or endorsement of one OS over another, but the consumer seems to have spoken.