What are they on?
You launch a new, me too, product into a market with a dominant incumbent and make it the same price (if not a bit more expensive). It fails to sell in significant numbers, so you introduce a tweak at an even higher price?
Despite its (arguable) superiority to the iPad in some respects, it's surely obvious that it needs to be substantially cheaper to stand the slightest chance. If that means taking a loss until you can build up some volume sales, that's the price you pay to be in the game. If you don't want to pay it, don't play.