Ten Reasons Why the Kindle Fire is good for the iPad

If you follow the press after the Amazon Kindle Fire announcement, you might think that the only question is how bad it will be for the iPad.  Most seem to have settled on "it will take market share away, but it's not a killer."

I, on the other hand, think the Kindle Fire will be good for the iPad.  Why so?

1. It moves us from an iPad market to a Tablet market.  That might seem bad, but if the Fire sells well people will realize that it's not just a bunch of people mesmerized by Steve Jobs that are buying these things.  And so the conversation will move to what is the best in tablets, which is going to be the iPad.
2. It gives Apple something to compete against.  Not that Apple would rest on their laurels, but competition is always good for consumers.  The iPad will be better because of this.
3. It lets people put-off by the iPad (and its price) get into the market and move up latter where they might not jump in starting at an iPad.
4. It won't take away that many sales from the iPad.  Maybe the iPod touch, since the Kindle Fire is kind of a large type version of the iPod touch.
5. It pinches other competitors between Amazon's low price and Apple's high function.  That should discourage other businesses, not that other businesses have turned out to be much of a threat.
6. Fire is based on Android, but not marketed as such.  People will not naturally think they should have an Android phone to go with their Fire tablet (unless Amazon releases a Fire Phone).
7. Those of us with poorer eyesight (say, older folks) are not going to be thrilled with a 7 inch form factor for general purpose work.
8. Fire is going to have to pay a Microsoft patent troll tax.  But it is going to pay nothing to Google.  Enemy of my Enemy rule...
9. Apple is still going to dominate the world of apps.  People with Fires are going to envy iPads.  But not the other way around.
10. Fire's streamlined set of hardware is going to make people more impressed with what Apple packs in ... especially if the iPad 3 has a retina display.

There will be amazing sales of the device, and it will probably be the electronic gift of 2011.   But when the dust settles, Apple will still be selling iPads in huge quantities.