I highly doubt Apple will reduce their price. Think of it this way, Amazon HAD to have a cheap price like that with their software offering. From everything I've seen, so far, this is purely a media consumption device. It does not have the power to drive "business apps" like the iPad does (financial, medical, media production, gen. business, etc...). Without the power of these apps, I think amazon hit the nail on pricing @ $200. This is purely consumption device. Now iPad, at first it seemed it was purely consumption, but because of the power of the apps, it has grown into, you can argue, a viable laptop replacement. I know we replace my wifes macbook with an iPad. I can't believe I'm saying this, but apple is positioned, whether intentional or not, to bring tablets mainstream in the workplace. There's a lot more that goes into my thoughts, but I don't want to ramble on anymore. My 2 cents.