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Amazon seems to have their act together when it comes to selling digital movies, music, and books. I'm sure that they can do at least a good a job as Apple when it comes to selling Tablets and Tablet Apps, but they'll have to be more price-conscious than Apple ($399 not $499 for an entry model), and use the sales of apps to make up the difference in earnings. If they treat developers of Apps better than Apple, and end up with some exclusive titles that won't work on an iPad, they could even have a hit on their hands.
I'm not sure everyone needs a tablet computer, because they're not so good for content creation, only for content consumption. And with the economy the way it is, asking people to part with $500+ on something they don't need seems a bit ridiculous. Until Android's applications reach the maturity of the iPad's, and unless Amazon can market their tablets as well as Apple, I'm not sure that the Amazon brand name will help that much.