Thats a narrow view. The difference between the iPod and iPad dominating the market is that the iPod was a superior product priced competitively with the Jukebox/Sansa/No Name brands it put up against and the ONLY thing it did was play music. This no longer is the case with those who are contemplating an iPad vs Fire decision because, while the iPad is clearly superior as an overall product, it also costs more than twice the price and there's a sizable portion of the market that aren't willing to invest $500+ in a product that they only intend to do specific things with.If it's the same crowd that didn't want/need an iPAd, then the future of the Fire isn't too bright.
We're getting into an iPod situation, where there will really only be demand for Apple's implementation, while competitors struggle among themselves for the scraps.
People tend to downplay the direct competition these two products have, but IF someone were to go to you "I want a tablet, what should I get" then (pending on how good a friend you are) you're going to evaluate THEIR needs and it probably will come down to a $200 Kindle or a $600 iPad.
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