HP's margin is lower than 30% on $500 MSRP. That means it costs HP at least $350 to produce each TouchPad (before the cost of buying Palm). Selling at $99 means

HP's margin is lower than 30% on $500 MSRP. That means it costs HP at least $350 to produce each TouchPad (before the cost of buying Palm). Selling at $99 means at least a $200 lost on each item. Not sustainable.