Why Is The Google Phone Expensive?

Image representing Android as depicted in Crun...
Image via CrunchBase
Google is about to hit the tablet market with something priced around $200. That'd be an explicit competition with Amazon, not Apple, but you get the point.

I have always been surprised as to why the best Android phones were the same price as the iPhone. The Android operating system is free, the iPhone operating system is not free. So why are not the Android phones cheaper?

If the iPhones are going to be $200, the Google Phone has to be more like $100. That is where I come from.
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