First let me state that with the limited knowledge that I have with the hardware and software of the Fire, I think it has the potential to be a huge success. But it's not really competing directly in the iPad segment... just like the iPad it created its own market. iPad:laptop::Fire:iPad Think about that. I could go on forever talking about why I think the Fire has the pieces to be a successful tablet and how it seperated itself from the higher quality, more multifunctional iPad, but that's not the point of this thread.. well maybe it is a bit, but I'll touch on that later. Whether you like the 7" size or not, I am sure Apple has been watching that segment very carefully. They'd be stupid not to. Sure they claimed 7" tabs were DOA, but if 7"ers started flying off the shelves you can bet Apple would have a 7" iPad ready for the limelight. Sure 7" tabs haven't exactly been a huge hit, but neither have 10" tabs not named iPad! Plus up till now all 7" tabs have had some flaw (poor hardware and/or poor software) and they usually cost the same as the iPad! What was the point? Now BAM! Amazon comes out with a highly focused tablet that has limited functions, but does what it does very well (sound familiar?) and (and here's the kicker) is priced at $200!!? If Apple were to release a 7" iPad there is not a chance they would meet that price. Apple would consier a $200 iPad to be a complete piece of crap. It would probably be $400 or maybe $300 if we are really lucky. That would place the 7" iPad in no man's land. Consumers would decide on either the small, highly portable, $200 Fire that's finely tuned for media consumption OR the more powerful, larger, more capable 10" $500 iPad. So I see two scenarios. Kindle Fire has mediocre success and Apple points, laughs and says "see I told you 7" tabs sucked!!" or the Fire is a huge success, but Apple realizes that a $300-$400 7" iPad would have bad sales and/or canabalize 10" iPad. There would be no incentive. Maybe they just need to figure out how to make a $200-$250 iPad... I think Amazon really did revolutionize the 7" tab segment. They gave the segment a price point and purpose.