Suspect it was deliberate to keep the price down initially when they were uncertain if tablets would take off.I'm still confused why they chose to make the iPad with 256MB of memory
Remember it was just a large iPod then
It could have been price, but if so it didn't save them much. The 256MB RAM chip in the iPad costs Apple a whopping $10. Looking at the profit margin on iPads an extra $10 wouldn't have hurt the bottom line much.
I think they made it 256MB so you would want the next version that has 512MB. And a better processor, etc. If you make the perfect tablet the first time around, who is going to buy the next version?