The funny thing is that by optimizing the supply chain and manufacturing process, Apple has managed to significantly cut costs (or keep them high for competitors). For example, the Vaio Z is much more expensive than the latest MBA.
While it is true that the Vaio Z is priced higher than the Air, the Vaio Z also has a faster processor (2.3ghz vs 1.7ghz), and can be configured to have up to a 2.7ghz i7, 512gb SSD, 8gb of ram, and a full 1920x1080 display (the Air maxes out at 1.8ghz, 256gb SSD, 4gb of ram and a 1440x900 screen). That alone would be worth it for many users looking for a machine that is closer to a desktop replacement in a small, lightweight form factor.
Oh yeah, it also includes a CD/DVD drive and a decent GPU (although it is external only).
