IIRC, Apple currently dominates the profit margin on computers even though it doesn't dominate volume, thanks to its ability to sell value.<p>The very nice thing about this (if true) is that it will allow Apple to continue to mercilessly drive prices down while continuing to invest in R&#38;D. That's exactly what they did with iPods and laptops, and it must be insanely difficult to compete with them.<p>Can you imagine rolling out a product priced at $450 knowing Apple could put the iPad on sale for $400 and still make money? What are you going to do, break even at $400 only to watch them sell it for $350 and outsell you and still make money?