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India's $35 7-Inch Android Tablet To Hit In January
indogiree writes "Engadget reports that India has just awarded the manufacturing contract to HCL Technologies. The first shipment will supposedly only contain the 7-inch model and is set to arrive on January 10. It's unclear if the $35 price has stuck or whether India's been successful in plans to drive the price down to $10 eventually with the help of large orders and government subsidies. HCL Technologies plans to initially produce 100,000 units. Among the key features of this India-based tablet include 2GB of RAM, web-conferencing, PDF reader, unzip, WiFi, camera and USB connectivity."
Because, as Apple shows, people are not necessarily going for the cheapest thing.
Also you're shooting yourself with low profit margins - look at Motorola and Nokia nowadays - they were selling decent phones a while ago and decided to go for the low hanging fruit of cheap phones. That didn't leave enough focus/resources on the smartphones.
The result is the're both still in big trouble, with Motorola resuscitated by Google's Android as compared to cash rich Apple, who clearly have a strategy that brings in more money and focuses on innovation much more...