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HP gets about 5-6% operating margin on PCs: HP personal systems group: http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-n... Personal Systems Group (PSG) revenue declined 3% year over year with a 5.9% operating margin.

Dell had $2.9 billion in consumer sales, $ 73 million profit: http://content.dell.com/us/en/corp/d/secure/fiscal12q2_relea...

Meanwhile, PC sales are declining in the U.S. and Europe. So it's a slow/negative growth market with small profits.

Virtually all of the (non-Apple) profit in the PC market accumulates to Microsoft and Intel. Windows costs around $50, that means that even if they could make a tablet as cheaply as Apple, they would still make significantly less profit.

And there is no evidence at all that anyone can compete with the iPad right now.



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