Does anyone think AAPL will not have a strategy for low cost tablets?
Looking at history, my guess, is that they will, and anyone using "what ifs" to claim they will not is lacking in their analysis.
1. iPod - Apple continued to innovate the iPod, and after a period of time, introduced smaller, more inexpensive models that allowed consumer to buy-down, but be exposed to AAPL's ecosystem.
2. iPhone - While Apple did not formally announce a low-end phone, their 3GS is the second best selling smart phone (next to the iPhone 4), for about $50 (and only available on at&t's network).
Well, if they introduced lower-end versions of very successful products, the likely hood is high that AAPL will (or can) release a lower-end iPad competing with the lower-end segment, while lacking the higher-end features.
What if Apple decides to re-sell the original iPad (w/out cameras) with lower cost internals, while being a 10inch tablet? What if it costs around $200 (and still be profitable)?
What if, what if, what if...
Point is, Apple can do these thing and have shown to do these things through a product's life cycle. To ignore this, is to lack a complete analysis on the company.
But despite all this 'what if' non-sense, Apple is about profitability. They learned to not sell products for a loss. They want profitable market share.