And I have a feeling those that are buying a Fire were never going to buy an iPad in the first place.
Really? C'mon I have a MacPro, an iPhone, 2 mac laptops and when the fire came out I said "cool!" Because here's what I want - I just want to sit in front of the TV with my iPad and surf the net and check email, that kind of stuff. Also, it would be great to velcro one to the back of a car seat and play movies for the kids on trips. Hell, a 7" DVD player we use now for that purpose cost $150 and that's all it does. So yeah, $200 for a device that can play movies and check emai and surf? I would have probably bought this instead of the portable DVD player we bought if it had been out.
Now, with Garage Band on the iPad be arguably better than on my Desktop because you can play piano, guitar and drums on it for $5 I also see the value of the iPad. But my WIFE does not.