I think the reason it took them off guard is because Amazon was big enough to do the one thing that needed to be done to really compete - probably undercut their own profit margin because they'll make more money from selling things on the Fire than they will by selling the devices themselves.

All the other companies weren't doing things in as slick a way or, in some instances, as well as Apple... So the choice for the consumer was obvious.

Competition is good. :D Not that I have a need for a tablet either way, but it's good to see more choice - hope for Kobo's sake that for now they stay out of Canada, though.