I'm still not following the argument. Google producing tablets is a positive externality for Amazon. The Amazon app store, Amazon MP3 store, and Kindle app ru

I'm still not following the argument. Google producing tablets is a positive externality for Amazon. The Amazon app store, Amazon MP3 store, and Kindle app run great on any android tablet. The Amazon Fire was the catalyst of the sub $200 tablet revolution. As far as subsidizing the tablet further, my guess is that Amazon Prime subscriptions will subsidize all Kindles. If you are a Prime member, you get to buy 1 Kindle a year at a subsidized price. Stats have shown Prime members to buy more things from Amazon.