Firstview HK Electronic Limited has presented a SmartBook that only cost $65 to make. It's called the Nike PC706V, it will has a 7-inch screen (800 × 480), a VIA 8505 ARM 9 clocked at 533Mhz with 128 MB of RAM, a 2GB capacity, WiFi, a USB drive and a 2100 mAh battery that should last 4 hours. It has Android 1.6 installed but this could potentially be upgraded to Android 2.1.
Depending on which manufacturer picks this up it could cost anywhere between $65-$200. My guess is it'll stay around $150 for all markets. Devices like this will help Android grow exponentially, whether you have a $80 budget or a $100, there will be options for you to get a good device at any price point.