I really, really wanted a Windows tablet five years ago, but the prices were way too high. Whatever your feelings about Apple, their ability to crank tablet prices down to a reasonable range has been a big boon for everyone wanting to buy the form factor. They may lead right now, but when suppliers catch up and can get parts to all manufacturers (in a year or two), we'll all be better off that this is no longer considered a luxurious exclusive of the high end like the Windows slates used to be.
But how do they do it? Jobs may be the PR showman, but Tim Cook is the Compaq-alumnus who is the real price magician.
Remember back in 2005 when Apple made a huge exclusive deal for 5 years of Flash RAM with Samsung? That was more than a year before they even introduced the iPhone, but Tim Cook locked up supplier deals people thought were insane at the time. Apple only makes Macs and iPods, what the heck are they going to use all that flash RAM for?
Apple now has a lot of cash on hand to get the best prices and to make exclusive deals like that, which they said they just did for three more critical parts in their last earnings report (and people are speculating over what those three parts are).
But finally, when suppliers aren't able to deliver on time, in quantity, and at a good price, they haven't been shy about pitting suppliers against each other.
Even with the cheapest supplies, might Apple be selling the iPad at a loss? At least for the 1st generation iPad, it's unlikely. Though Apple doesn't break out many numbers they show that iPad revenue over Christmas was almost equal to Mac revenue. Considering the larger sales of the iPad, more sold at a loss would be more loss, and that doesn't seem to have happened with their record profits over Christmas. Second, Phil Schiller last year said after the introduction but before it went on sale that Apple still had some pricing flexibility (meaning they could cut deals with big companies or bring the price down to the public, if no one bought it). Those two things together really suggest that this isn't a loss leader for Apple like the XBox was for Microsoft back in 2005. This may all change with iPad 2, but it doesn't really look like they added any expensive features to the (minor?) upgrade this time around.
With as many of the iPad parts coming from Samsung (including the A4 & A5 system-on-a-chip) you'd expect Samsung would be in the best position to make a real competitor. Apple's price advantage (though painful to competitors, right now) is short term. It's good that the market is getting competitive with low power, touch input, tablet supplies. And it will be even better for users when tablets in 2012 will be significantly better and maybe even cheaper from a variety of sources.
Just be patient, Samsung and the iPad competitors will be back soon with better products.