The model could work like the console market. Sony and Microsoft both initially sold their core hardware at a loss with the hope of making up the difference in

The model could work like the console market. Sony and Microsoft both initially sold their core hardware at a loss with the hope of making up the difference in game license fees and big margins on peripherals. However, it'd be a pretty tall order to get $200+ dollars per person out the HP App Store especially when Apple has pushed the expected price down to $1 for most apps. Also, with a device price so low I'd have to think you're already targeting the cheapskate market to begin with, so there is no reason to think these particular customers would be willing to buy tons of apps. Clearly you'd prefer to be Nintendo and sell the hardware for a profit while also collecting generous license fees.