Originally Posted by Dick Applebaum
As it is, the EOLed Touchpad at $99 appears to have been a much better deal than either the Fire or Nook.
If anything, the Kindle Fire proved to be a suitable straw man to put up against the iPad. Amazon doesn't claim it competes with the iPad, people who show interest in the Kindle admit it is technologically inferior to an iPad, yet a large number of professional and casual commentators insist
on comparing it to the iPad. Why?
My pet theory is that the Kindle Fire and the Nook are to full-price tablets as netbooks are to laptops. They are a different category, however they will eat into tablet sales the same way that netbooks ate into laptop sales, and the way later iPad, although in a completely different category, drank up the netbooks' milkshake.
Increasing diversity in this segment of the market will increase competition, with more choices for the consumer at lower price points. Producers will have to lower their profit margins, as people's perception of the value of tablets is no longer anchored at $500 and above.