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That's insane. They must be really, really desperate to get at least some money back. According to iSuppli [1], TouchPad costs $306.65 to make. It's over $200 lost on each one of those. It's going to be really tough for HP.

[1] http://allthingsd.com/20110703/hps-touchpad-teardown-its-dee... (I couldn't find their (iSuppli) orignal article, I believe it's behind some paywall.)