Quote Originally Posted by joshlogic View Post
Remember, Apple makes far more on apps/music/game purchases than hardware sales. Even if they broke even on the device cost, software sales are highly profitable!
Actually they make significantly more from hardware sales than anything else. If I remember correctly, they're only making 2 billion or so a year from iTunes, and the majority of their money comes from iPhone's.

I think we'll see this come to light... for $299. It'll squash a lot of competition trying to survive in that lower price point.