Guitars from Wal~Mart in a cardboard box. I saw one the other day. A purple on white "Hannah Montana" acoustic. $70. A granddad type tossed it into the back of a pickup truck. (25 degrees outside.) I'd estimate $55 worth of Hannah Montana and at most $15 worth of cheap labor, shipping, handling, and parts. Go figure.
That being said...Yesterday I bought a "First Act" Volkswagen Edition. One of the guitars that was given away with the purchase of a volkswagen car. That was a unique marketing ploy, eh?
...back to the subject. It will be sad that a lot of kids will get these cheap quality guitars, become totally discouraged and never play again. My first guitar was a 3/4 Yamaha acoustic. Aside from socks and underwear, that's what I got for Christmas that year. Best gift I ever had! Not very expensive, good quality and playability. Thanks Mom. You ROCK!!!