Between Bay Trail, Tegra 4 and Snapdragon 800s that power some of the competition? I have only seen 1 A7 benchmark that was anandtech running browser mark against some other phones that were available at the time. That's really all we know about it. But let me ask, if this particular part is the basis of an argument how much could say a theoretical 20% difference in the compute power make in terms of applications and does this justify a 30%-70+% difference in price? Is price-performance ratio not part of being best-in-class hardware?
I might not be a fan of Apple's pricing sometimes (like everyone I want the best stuff for as cheap as possible), but when you look at competing tablets from Amazing and Google they are being sold at break even or with a very slight profit. There is no way that Apple can compete with this on price. Just like PC's before it, you've got everyone on a race to the bottom margins wise and Apple with premium products at higher prices and strong margins. As someone who just started a food importing business I'm selling premium products at lower volumes with higher margins, it's good business. I can't begrudge them for trying to make good margins on their products, they're running a business not a charity.
If you look at something like the Nexus 7 or Kindle Fire, if they were products where the parent company needed to make a strong profit on each device sold they would not be $230 retail.
Apple has sold 170 million iPads at premium pricing with strong margins. They're not going to get into a price war with cheaper Android tablets just like they never got into a price war with commodity PC's and laptops in the past. People need to understand that this is the way they operate and stop complaining every time they release a product at higher prices vs. the competition. If the price gap is too big to justify, buy the competing product.