I believe that Apple spent more time thinking about how not to compete with themselves (i.e. segment the product and price it just right to cause the least amou

I believe that Apple spent more time thinking about how not to compete with themselves (i.e. segment the product and price it just right to cause the least amount of ripples for the rest of the product portfolio) than thinking about the tablet competition. In terms of short term downside risk, there's more money at stake with the former than the latter.