Word on the street is the iPad 2 will have a low end $399.99 version as well. While others are just jumping into the fray, Apple's had time to reduce production and R&D costs due to the success of the original iPad.
Companies like Motorola may end up losing out the same way they did back when Apple introduced the iPod for the first time. By the time they caught up, it was too late. Nobody could produce a device as nice as the iPod for the same price point.