Prices for new products normally start high and come down over time. It's not just Apple. The iPhone was a big drop that was abnormally because it wasn't originally subsidized by AT&T like other phones. Plus, the $600 cost of the original phone wasn't too high if people were buying them in droves. Simple supply and demand. As for the iPad, I won't buy one right away for myself, but then I already have a bunch of computers and an iPhone. But I can see buying one for my 90 year old grandmother who could easily figure out how to use this. She could read books and surf the web on it, but there's no way I could teach her how to use a normal computer.