HP told the world sales of the TouchPad were disappointing when the price was $400 but now they are clearing them at $100 and sales sky-rocketed. This is proof that consumers had no issues with the performance and if OEMs and retailers refrain from “early adopter” pricing, products will sell. China is quite willing to keep prices for components and assembly low, so selling the gadget for $200 likely would have made it a success. Tablets are not ultra-anything. They are small cheap computers and should be produced and sold as such.
Copying Apple’s approach does not work for everyone. That is not a competitive market. Dell, are you paying attention? Nope. Dell plans to raise prices by “adding value”. The world can configure its own PCs and run FLOSS. They don’t need more “value”/higher prices.