Originally Posted by Doctor David
That's kind of a distinction without a difference. Gatorguy said it doesn't compete with the ipad but it may take sales from it. Taking sales is competing.
I think the proper phrase is "doesn't directly
The Amazon tablet is aimed at a different end user, but this same end user has up until now been buying iPads at lest some of the time. So if you are buying an iPad and just using it for reading and playing the occasional game then you might the tempted to use this device instead. It doesn't do as much, but it's cheaper.
It doesn't "directly compete" because what it does is just a subset of what the iPad can potentially
do. At the same time, recent studies have shown that a lot of iPad buyers do regard them as "toys" and do primarily use them just for reading and playing the occasional game.
I don't think it's right to say that the two devices compete or don't compete. The situation is more complicated than that.
In terms of iPad sales, I would say that some
sales will indeed be stolen by "dumb" or "locked" tablets like Amazon's as tablet's gain popularity in general. But the iPad is still stealing sales away from netbooks and laptops on the other end and operating in markets that the Amazon tablet will never be in. The markets for each overlap, but don't directly compete.