I would like to understand the mechanism by which you think a Kindle Fire success would aid the sale of other 7" tablets. Most people think that Amazon will kill the other Android tablets of all sizes, plus put a dent in iPad sales.
Is there really such a thing as 'the 7" tablet category'? Does any consumer walk into Best Buy thinking, "I'm in the market for a 7-inch tablet"? That seems to me to be an artificial layering done after the fact, but with no predictive value.
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