"There's a difference between an iPad and tablets. That difference is something you just can't define."

There's the same difference between iPhone and Android, no? Last quarter, Android surged from 40 to 43% market share. iPhone held at 28% (still healthy growth, mind you-- the whole market is growing).

The ~$200 price point is a huge differentiator. Before this, non-iPads really didn't have any differentiator (prices were comparable and, as you say, iPads were just better). The Fire is going to be a big deal.