The iPad wasn't positioned to be a productivity device though. The $499 price was a surprise, but only because all the online chatter was guessing $999. It was at best a Kindle/Youtube/Netflix device. The marketing for iPad these days reflects this, the ads explicitly say "not a computer".

Tablet computers at that time ran full Windows, came with a keyboard and had pen support which the iPad didn't for many years. In fact iOS didn't even have a file manager until 2017, or mouse support until 2019.