@itpro_z I'd agree that relatively few people, overall, have purchased any tablets. We're talking a few million devices total, out of a worldwide population of what, 6 billion? i think that puts tablet sales at less than 1% of the global population -- a small number.
I'd also agree that we're starting to see iPod sales slow down. Let's face it -- at least the basic music players. I believe the iPod Touch continues to sell well, and obviously iPhone and iPad models are selling very well.
But I think it's a bit premature to predict iPhone and iPad sales slowing like iPod sales. Music-only iPods (which, btw, sold quite well for nearly a decade) are limited devices: "one trick ponies", if you will, whereas iPhones and iPads have numerous uses and excellent general purpose computing devices. Most importantly, they're adaptable: in addition to new hardware features that Apple can add, apps make sure new functionality can be added whenever. And with 300,000 apps already available, there are tons of uses for the things.
And Apple probably does have another ace up its sleeve. Or two. Or three. And in the meantime, it has the #1 selling smartphone (not platform) and the #1 selling tablet. So, for the foreseeable future, it's in an excellent, enviable position in both of those markets.
Don't discount that Apple also is the only tablet maker to have "scale" on their side, too. Because of the rate at which they're selling iPads (and to a lesser extent, iPhones) Apple is getting better component pricing than other tablet makers. That makes it that much harder for competitors to fight Apple on pricing alone ... if they even want to: competing on price isn't always a wise business move.
Finally, there's the whole patent war that's brewing. Apple may yet be able to curtail sales of competing tablets and smartphones that infringe on Apple patents.
As for "Apple will be gobbled up by a larger competitor" ... who might that be? As the second most valuable company in the world (and briefly as #1), there essentially is no one larger ... unless or until Apple starts to sputter. But analysts don't see that happening any time soon, given the strength of Apple's product lines in their respective markets ... and the weaknesses of its competitors.
If anything, Android may well wind up being a footnote in tech history, notable for what can happen when a company isn't as careful as it should to avoid incorporating patented technologies into its products.