Based on stories popping up in the news lately, I'm starting to rethink my opinion on this. According to this article in particular, e ink screen orders from Amazon have tanked and so have sales of the Kindle Fire:
http://seekingalpha.com/article/557151-kindle-sales-plunge-made-amazon-com-s-gross-margin-look-better?source=yahoo
I'm surprised by this. Maybe Apple SHOULDN'T do an iPad Mini!!
Has no correlation with the potential for Apple.
The Kindle Fire is a loss leader to sell more Amazon content. It's severely limited with no camera or bluetooth. And while it runs Android it's a heavily masked version.
People aren't buying iPads because they are tablets. They're buying iPads because of the OS and apps and user experience.