One of their "secret" is to make people pay for something that will be delivered in 2017, so prices should go way down for this kind of equipment by then (basically commodity price).
Hm, "usual" pricedrop over time didn't helped much to make the Pandora actualy cheaper. ^^" Of course this CHIP will have a much larger quantity compared to the pandora but the low price is still impressive.
What's known about the Allwinner CPU and the Mali GPU in relation to price/performance? 1GHz CPU for less than 9$ is actualy a strong argument (what does the OMAP 5 cost, again?)