Apple Inc (AAPL)

[krk]

There is a Barbarian @ the Gate !

Apple must Fire back with a 7" iPod touch.

Apple should first get the media to alter its perception of the Kindle Fire as just a larger but stunted iPod touch.

And it is time to get past Steve Jobs’ disapproval and speedily put out a 7" iPod touch. Slapping a larger screen and a larger battery should be a trivial task for the product wizards in Cupertino.

With all the buzz in the media about Kindle Fire and the meme that I think Amazon itself is fanning about how it is being sold "below cost" has created the popular impression of the Fire being an irresistible Bargain! First hand I can tell you it is on the Christmas shopping list of several gizmo-skeptic but bargain-loving members of my immediate family.

A 7" $299 iPod will totally neutralize a clear and present danger from Amazon & BN. With a camera, retina display and the Apple cachet, most Fire shoppers will switch to Apple in a heartbeat.

I would hate to see a replay of Apple again being put on the ropes by another barbarian from Seattle! Unless Apple acts fast, there is danger of the Android getting entrenched in the Tablet space too.