Quote Originally Posted by curaga View Post
LCD screens are expensive, one would think getting six more inches would cost more than a GSM modem. I was comparing the cheapest of each here, not the cheapest tablet to some 500 phone.
Cut corners with the pixel density, and capacitive touch grid density. Plus you can use the same (or similar) processor as the phones. An iPhone 4 costs so much because it is an engineering miracle that so many components can be fitted into such a small volume. Manufacturing costs also scale with the number of individual physical components used.