Here is an analysis of Apple's costs for the various iPad models.

Cost to build iPad: iSuppli says as little as $229.35 | Crave - CNET

Reminds me there may be price cuts, or at least it's a possibility. AppleUsers.net | Blog | iPad Price Cuts Possible?

Price cut? It depends upon the competition.

Wow, thats quite the markup. Usually electronics in a market like this sell a very small bit above cost or sometimes even below cost and rely on software and apps to make money.

It's great markup for an initial release, so it gives them the ability to be flexible on the pricing.

Originally Posted by JohnnyApple

It's great markup for an initial release, so it gives them the ability to be flexible on the pricing.

Your right. We as consumers should love getting rayped by corporate america. Especially in this economic climate. Frackin fanboys.

Originally Posted by terry

Originally Posted by JohnnyApple

It's great markup for an initial release, so it gives them the ability to be flexible on the pricing.

Your right. We as consumers should love getting rayped by corporate america. Especially in this economic climate. Frackin fanboys.

Who is to judge what is an isn't a good price?

Most people think paying $100,000 for a car is ridiculous, I do not. Many people pay good money for gourmet food and designer clothes as well, doesn't mean they are being "rayped" as you so eloquently put it.

I think $499 is a great starting price for the iPad, I will gladly pay that much, because I think it's worth it. If the price drops later, great, but I won't feel any worse about paying $499.