Apple executives see the arrival of a throng of more affordable tablet 'rivals' on the scene as an opportunity for the iPad to reach a far larger user base.
As a report from JP Morgan analyst Mark Moskowitz reveals, at the Cupertino headquarters the Amazon Kinde Fire is considered a welcome presence on the market.
Moskowitz, based his information on some discussions he had with Apple's chief executive Tim Cook and chief financial officer Peter Oppenheimer. The two Apple officials believe that Amazon's tablet and others will bring more entry level users to the market, and in the end these newcomers will move on to adopt top-end tablets, which include, of course, Apple's iPad.
Moskowitz wrote in a note to investors, "We think that Apple views the Kindle Fire as a device that stands to bring incremental consumers to the tablet market, and here, these consumers could gravitate to more feature-rich experiences."
Apple doesn't feel threatened by low priced tablets at the moment, but is rather analysing the strategic role of such products within the market that it owns.
Of course there has been talk that Apple might introduce a lower end tablet itself. In the smartphone sector the iPhone 3GS is being used in a similar way to expand Apple's fanbase after the recent significant price slash.