Wouldn't Apple get much more business by lowering their prices?

I'm asking this because I really want an iPad for Christmas and I went to the Apple store today with my dad to show him. He says they're too expensive. They're black Friday "sale" was $41 off (it helps, but it's not much compared to the price tag). We also looked at computers and my dad even admitted their computers and laptops were superior to PCs but they're just way too expensive. So my question is, why doesn't Apple just lower their prices? It literally doesn't cost Apple any more than $20 at the most to assemble a single item. If they lowered their prices, they would get more customers which would in turn lead to higher sales and would probably increase their income too. The main reason I'm asking this is because I don't see why the iPad has to be $500 and $41 off is only 8% off the regular price. And they call that Black Friday. Anyone know why their stuff is so expensive?
Their desktops have a terrabyte of storage. No PC that I'm aware of offers that much storage. Not that I would need that much, but I've also noticed that Apple software runs much more smoothly than Windows.
 
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