Kindle Fire is competint
It competes with it... It's not designed to compete with it, but it is... case in point... I got my wife a Kindle Fire instead of an iPad. If the Kindle Fire wasn't around (or the Nook Color), I probably would've been forking over $499 for an iPad... Instead, it was much more worth it to get the Fire for $199, Prime Subscription and a $200 amazon card for her... I prefer Android tablets myself... but for my wife, I needed something simpler and meant for consumption... Fire fit that role perfect. iPad would have too, but I got more value in the end (for her purposes) going Amazon...