It is an amount based on the cost of components of the iPad, reduced to take into account cheaper parts for this product. It’s an HD screen, and that is expensive no matter what else is included. It has some features that the iPad does not, so it might not even be cheaper to produce.
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Specialized tablets with multitouch first to use Pixel Qi displays
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Monday, Dec 7th 2009
Pixel Qi have announced that their first batch of production displays will be ready shortly, and confirmed that the first recipients for the panels will be specialized tablet devices with multi-touch. Project lead Mary Lou Jepsen does not reveal the identity of the manufacturer using the Pixel Qi screens which work as color LCDs in regular lighting, but can be read as easily as e-ink panels in direct sunlight but did say that the companys customers will be at 
She also says that increasingly these screens will be super-slim, but some customers prefer the standard thickness. It seems likely that one or more or Pixel Qis initial customers would use the displays for ebook readers, since the technology would both support video and low-power text display.