but it is nice seeing a tablet compete with apple on size unlike the xoom, but i still don't understand why tablets cost so much more then netbooks..
I don't think it's "portability" that explains the cost (hopefully you guys haven't seen my sermons on this question elsewhere in the forum!).
I've been wondering the same thing, and had long-predicted that Android tablets would end up $300-$400. My reasoning for why they're not--and instead are ending up in the $400-$600 range--is due to several issues:
(1) Apparently Apple has a choke-hold on touchscreens and memory, which is driving costs up for other manufacturers.
(2) To compete with the iPad, companies like Motorola, HTC, Toshiba, Samsung, etc. assume their tablets need better hardware. Hence, we have things like dual-cameras, dual-core CPUs, HD displays and HDMI interfaces. In particular, these are things that (I assume) drive the wholesale component build price past the original netbook price-point of $300 (consider that dual-atom netbooks run $350-$400).
(3) In addition to the last point, many tablets have GPS, accelerometers, HD-quality cameras, 3G/4G cards, and so on.
So the business model seems to be "put in as much digital bling as possible, and drive the price up to $500 or $600." If that argument is correct, then I wonder if there'll be a minor consumer revolt, and people will start looking for tablets that are little more humble in hardware AND price. Of course, the company I'd love to see fill that niche is Asus (like they did with netbooks) but who can predict?
Just my 2 cents!
-Matt