I don't see how their price point can be lower since they are using commodity components. Their contribution is the software+hardware combo. In fact they will

I don't see how their price point can be lower since they are using commodity components. Their contribution is the software+hardware combo. In fact they will probably never come even close to competing on price. Hardware is a tricky game and most is sold at below production cost e.g. consoles and also I imagine the iPod. This loss is recouped through software licensing or in Apple's case the app store. This probably wont be an option for these guys since they are building on an open platform.