I think you're right that tablets are a luxury item but that might also be part of the iPad's success too. People aren't really looking for the cheapest option

I think you're right that tablets are a luxury item but that might also be part of the iPad's success too. People aren't really looking for the cheapest option it seems. I remember reading somewhere that the average iPad sale price ends up being above $650 since a good number of people opt for the larger capacity or cellular models.