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Well, it seems Notion Ink's Adam can compete
Taking a look at Notion Ink's Arm-based "Adam", the starting price ($425 = $375+$50 shipping) is below iPad, but specs are way above iPad (already competing with iPad2).

However, the main point of the article seems to be quite correct. Direct sales trough Apple Store is a great advantage - and of course, the way Apple is building it's marketing image is also very impressive!
Posted by ghop
Updated - 11th Mar 2011