let's just be clear that apple does NOT have to compete on price with amazon. it still lacks so much of apple's ecosystem (productivity). yes for a consumption device this is amazing, and very well priced, but an ipad mini I honestly don't expect it to go for less the $299. I expect to see it actually @ $349. Remember which one has millions of apps. Which one is currently being used in schools, governments, fortune 500 companies, airlines, hospitals, etc... That is because of productivity apps, not consumption. Yes amazon is creeping closer, yes it would be mind boggling for amazon to NOT open up their own app store eventually (edit: for clarification I mean ecosystem w/ special api and all), but what we have today is what we have today. But again, to think apple needs to compete w/ amazons currently offering, I don't think so, but I do think it would be wise of apple to plan accordingly, respond, and lock up the market while they have the opportunity.