Is Apple afraid of the Kindle Fire?

I've told you already that the Kindle Fire is, at its best...meh.

But it's only $199! 

As I've also told you, Amazon has the second best ecosystem for tablets. For $199, you get an e-Reader, web browser, video player. Yes, we can complain it's kinda sucky, the netbook of tablets, but it's only $199.

Along with that low price, which means Amazon loses a few bucks on each one, Amazon offers other cherries, particularly for Amazon Prime members. Lots of free movie streams, for example.

Still, I wouldn't buy it. Though I expect millions will. Which is why I think Apple has been planting rumors of an iPad 3 come February. It's there way of telling us all to not get nor give a Kindle Fire for Christmas. Hold off just a couple months and we'll have something much much better.

I don't think it will help. 

For millions of *potential* iPad buyers, the Kindle Fire, at less than half the price, is fine. For many millions of buyers, in fact. Which is why I wrote last month that I expect the Kindle Fire to be America's #1 selling tablet -- yes, above iPad -- by summer 2012. 

Apple needs to continue to make the iPad even more powerful and continue to remind buyers that the iPad is far more than a netbook replacement, or souped-up eReader. 

I think they have and I think they will. But those that are considering a $199 Kindle Fire for the holidays are not likely to be swayed by news of a new $500 iPad come late February.