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If the iPad competition really overproduces as much as this report expects them to, then there's going to be some massively discounted Android tablets come Christmas-time. Even I'd pick up a $99 Xoom.
Do you really think that Android tablet makers can continuously produce at that price point though?

Let's be honest here: as many benefits as the android -> hardware developer model has, there are some glaring weaknesses.

No, they can't, but that doesn't mean the cheap end of year push that will happen due to oversupply couldn't change the developer landscape