At $25 Raspberry Pi is a joke. If it actually sees a decent amount of sales, you will be sure to see actual companies that specialise in this field competing at lower prices and better performance. Raspberry Pi has realised something that everyone in the industry knows: computing is cheap. It will not take long for the competition to crush Raspberry Pi if there is a large enough market for what they are doing. As for now they are chasing after the tablet market and IMHO are going to do well.