[citation][nom]jaquith[/nom]My best guess is there will be a $199 iPad Mini which is a key amount for 'impulse buying' and I have no doubts there will be more expensive versions. The $199 ($200) is an important target to hit...we'll see.[/citation]
If I had to guess I would say $350 is far more likely start point- the entry level ipod touch (granted, it has a high res display, dual core SoC, and 32GB of NAND) costs $299, and I would guess that the iPad mini will cost significantly more- but less than the full size iPad, which starts at $500. Apple can afford to charge premiums, because, regardless of the quality/price of whatever they put out, people will buy it, because apple has good advertising, lots of market clout- consequently the average consumer sees apple products as superior, even if they are more expensive.