[citation][nom]yialanliu[/nom]Wow and I thought Apple was overpriced...[/citation]
The $1200 model isn't a tablet like the iPad. It's a PC in tablet form factor. The CPU will run circles around any iOS or Android device, it has 4 GB of RAM, and the 128 GB SSD is probably on SATA3 with ~500 MB/s transfer rates.
For a PC it seems overpriced too. But keep in mind it's been shoved into a tablet form factor which weighs less than 2 lbs. I'm possibly in the market for one because I've gotten sick of waiting for regular tablet makers to come out with bigger screens. There are some applications where you simply cannot move the screen closer to your eyes (displaying sheet music in my case), and the tiny 10" screens are simply inadequate. 11.6" is borderline (I used to use a 12.1" tablet PC, which was small but acceptable).
[citation][nom]joytech22[/nom]Heavily discounted my ass. For an i7 2600 with 8GB of RAM, 2TB HDD and a Radeon 6570, it'll set you back $1300 here.I could build that same machine for what, $824?That's still a markup of $476, minus shipping, manufacturing other things per machine of roughly $50-100 (probably less since shipped in bulk) and it's still marked up by more than $300.Hell, I'd be happy to make a cool $50 per machine. If I'm selling thousands of them that adds up.[/citation]
If you ever start a business expecting to survive on 5% margins, good luck! 10% is a more realistic minimum, and the average for all industries is around 15%. There are a few industries which have margins smaller than 10%, but they're usually oversupplied, extremely competitive, or in contraction (e.g. the hard drive industry which saw all the manufacturers merge into Seagate, WD, and Toshiba because of the extremely thin margins).