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History and as I said strategy. Historically Apple specifically and the computer/consumer industry in general lower prices on an annual-ish basis as economies of scale reduce production costs until they hit a "sweet spot" that balances growth with profit. For each $100 you drop the price you add millions of users. My guess is Apple wants to get the entry level iPad down to $299. . . . . . . .

I think we all fail to grasp all the expenses and costs that have to be covered in an iPad sale. It isn't just the device cost as a measure of its parts, or just the manufacturing and development cost. It's profit has to support the whole infrastructure. Every store and employee as well. The iPad at $299 is not very realistic, and if it were, the competition would be undercutting Apple to steal the market back from Apple before Apple "runs away with it" even further.

This is a good article on the subject, and why it is good that Apple can even get it down to what is already low at $500 entry.

http://articles.cnn.com/2011-02-21/tech/ipad.price.wired_1_ipad-samsung-s-galaxy-tab-apple-execs?_s=PM:TECH
 
When it comes to desktops I see it this way:
Windows-7 is pretty good and fairly configurable, but harder to maintain in the long term. And if anything like its predecessors is going to require a reinstall at some point down the line. Windows has drivers for every piece of hardware though, but the OS does not install all of them for you, making it impossible to boot a Windows drive to any machine.

Great posting overall.

I think you touched upon a key difference here - while the gap between Mac and Windows usability has closed significantly over the years (before Win95 there was no contest), the advantages of the Mac in terms or maintenance and administration has still not been closed. The problem is that for a personal/home computer, the user is saddled with both using and administering the system...

Back on topic, I am hoping to replace my really nice 64gb 3G iPad with an even better iPad 2 ASAP... :)
 
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