I would also add that the kindles and nooks are budget devices.
That's correct. They target a completely different audience (a pretty good argument could be made that the Kindle Fire is a competitor of sorts to the iPad), so comparing the Kindle, Nook, and other e-readers to the iPad is a bit silly. Sort of like comparing an Audi S8 to a Toyota Corolla - they're functionally similar but geared towards very different markets.
When was the last time u paid for a iTune? It's been over a year since i gave .99 cents to AAPL for digital media. The iPhone has blurry pics and poor navigation. I'm looking at a Best Buy flyer right now with a array of Android and Windows tablets priced 50% less than iPads and iPhones. Don't get me wrong as i'm an AAPL trader looking for a opportunity to make money. The big drop this week could have nice bounce...