$35 Tablet Computer?

Ran across this article today http://www.taranfx.com/worlds-cheapest-tablet and it was an interesting, albeit short, read into what will be the future of technology solutions.

It makes me ponder two points;
– Open source development on a wide scale (not only software). Sharing of ideas and creating a product for the better good of all, not just one group.

– Cost of production. If this in fact going to cost only $35 with the features it claims, why does the Kindle and E-Book readers cost hundreds of dollars