That's simply untrue. Look at the prices that the TP is getting on ebay - its close to $300. I'm sure they could break even at that price with profits added in from accessories and apps.
Originally Posted by Steep
At this point, it should be about creating a community of users.
Future profits could come once on a second and third iteration - TP2 & TP3, and the 7" device, and then with integration to HP Computers, and enterprise solutions.
They can make money on it- not at $99, but maybe at $300 or even $250.
Sure - Apple doesn't need to operate with the iPad as a loss leader, but they might honestly have to react if HP were able to scale profitably around that price point - because webOS is easy- and that has been Apple's advantage over Android.