Now, I think Amazon is using the Game console and Ink Jet printer model of sales: loose money on the player/maker, make money on the media/supplies which is great if one has total control of the media. As we all know, you can buy books on iPad and Android, as well as movies and other media.
I cannot see how the heck Amazon will have a compelling product advantage with Fire.
Score: iPad (and other Android devices) (unless Amazon stops selling to other devices).
It's all about building an Amazon ecosystem. Sure, you could buy your content elsewhere and import it to a Kindle Fire. But why would you, when shopping right from the Kindle Fire is so easy, and offers advantages like free cloud storage? It's the same model Apple used with iPod + iTunes. Make it easy, and people will buy their content and hardware together.
Now, Amazon reverses the way they go after profit, but it's the same concept. Tie the hardware and the content closer together.
Amazon has a clear lead selling eBooks, but it just started selling music, and I am pretty sure no video (since Fire is first color Kindle).
But I just think Amazons older readers will steal the show here since most books are still black and white (rapidly changing)
Score eBooks: Old Kindle, especially the 3G versions (for a short time until more colorful books are plentiful)
This is just an assumption. And one I disagree with. Yes, the regular Kindle will remain popular. But for an extra $100, you can get a Kindle that does double duty as a music/video player, gaming machine, web browser...
And for a lot less money than an iPad.
Video content is pretty much in iPad's favor becuase of iTunes, but that wont stop people from d/l movie files from net into Android.
But how good is Fire at playing video? For sure, at 8GB of memory, cant store too many files in it.
Score: slightly iPad.
Amazon's video distribution is arguably better than Apple's. Similar content, but Amazon Prime gives you the option to stream video. Unlimited streaming beats 64GB of internal memory.
Tell me if I am off base, but Fire looks like it will be a disaster for Amazon no matter what happens, both in that each Fire sold will cost Amazon plenty (per device sold), or by users who think Fire does not light their fire and don't get it, or worse, return it.
I think after the initial buying spree reviews will be middling and sales fall. Oh, I am sure Fire will have strong sales and do well, but not threaten iPad.
I just had to highlight this because you seem to contract yourself. So, will the Kindle Fire sell, or won't it?
In general terms, I agree it's not a "threat" to the iPad. For as much as they have in common, they're also very different devices with different audiences. I think the Kindle Fire will be bought by people who like the concept of a tablet, but were turned off by the iPad's high price. It will be bought by people who primarily want to consume content, a case in which the iPad's better specs are irrelevant. The iPad will continue to be bought by people invested in the Apple ecosystem, people who want the larger screen, and people who want to do more than just consume content. Oh, and Apple fan boys, of course.
Lots of room in the market for both devices, imo...