Apple CEO Tim Cook is not concerned about Amazon’s Kindle Fire taking any iPad market share. During the Apple earnings call on Tuesday Cook spoke about the Kindle Fire and competition in general in the tablet market:
We’ve seen several competitors come to market to try to compete with the iPad. Some had different form factors, different price points. And I think it’s reasonable to say that none of these have gained any traction thus far. And in fact, as all of those competitors were coming to market, our share actually went up, such that in the June quarter, according to IDC, we were responsible for three out of every four tablets sold.
The Fire is enough of a tablet for those that want to push the boundaries slightly and install some games and other Apps to pass the time, but its the core Amazon services that the Fire makes readily accessible and there is a large market out there hungry for easy to consume media.