Based on what metric? On the "I think it costs too much metric"? Guess what - your opinion is kind of meaningless to everyone but you. There are 2 ways to determine how much something is worth:
Originally Posted by r-nice
1) How much the item actually costs to produce, distribute, market, support, etc. By these metrics, nearly all tablets are cheap. You'd be hard pressed to find a price breakdown of any well-made tablet like the iPad, Xoom, TP, etc., that comes with a BOM (bill of materials) cost under $300. When you consider the other costs associated with the tablets, the starting price of $500 is damned good.*
2) How much the market will bear; meaning how much someone will pay for the item. By this metric, the only tablet that isn't overpriced is the iPad. They sell every one they can make** and all the other tablets are stagnant. What you saw with the TP is that the fire sale price was well below what it should have been. HP left at least $100/tablet on the table with this one.
I know that many of you are not in business (I'm not either) or you're too young to realize that there are other important factors to consider in pricing and purchasing decisions than your own inflated sense of importance, but it's got to be said.
* When the rumors of the iPad were first circulating, people were guessing it'd be $800-1000. When Jobs announced the price, there was quite a surprised reaction. To this day, competitors are saying they can't match the price.
** Tim Cook, Apple's COO, said this during their last earnings call. You might discount the statement because it came from an Apple exec, but it was given during a financial statement, meaning exaggerating the truth to sound good would have legal ramifications. In other words, it was the truth.