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The main flaw of tablets is this: Use case.
A good tablet is almost as expensive as a low-cost notebook. However, the notebook can do everything the tablet can do as well, most things even better, except mobile internet. The tablet is easier to carry around. But that is not a really strong argument. Name anything a tablet can do, you'll find a similarly priced notebook, that can do it as well or better.
On a fair with a lot of tech-savvy guys, someone used an iPad1 as a tray for two bottles of water. Someone pointed at him and said: "Finally a use-case for the iPad." Reaction: A lot of laughter and nodding along...
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THat's an argument that works for geeks. The average consumer finds the Ipad and the Ios ecosystem much more fluid and intuitive than, say, a netbook running Linux and the tablet form factor far superior to the netbook for watching movies, playing games, and otherwise enjoying content.
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Second flaw: People who may buy it
Normal people don't buy tablets. They buy desktops or notebooks. Only tech-fans buy tablets, but they are a minority. These people usually already have a smartphone which offers the same as a tablet does, only smaller. So even in this group you'll find people who'll say: "Why? I already have a device that can do it..."
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Actually, its the average guy who has been buying the Ipad, over the techie types who have saying repeatedly, how useless and overpriced the iPad is . You are just one of the many techies the average consumer has been ignoring.
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Why does the iPad sell good? Because Apple has fans. No, real fanatics. They will throw away their iPhone4 if the iPhone5 arrives. Have you seen an Apple-fan who still uses an iPhone1? They will buy almost anything from Apple and call it "the coolest, best, most awesome thing ever". Have you ever heard someone talking about a Samsung- or Dell-thing like that? Or ever seen someone saying "I have Windows 7. It's the best thing on the planet."
This is why the iPad sells well...
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Lots of non-Apple fans have been buying the iPad. Often its the only Apple device they have ever owned.
Man, you are a poster boy for the "How wrong were they guy" crowd. Let me guess. You also predicted that the iPhone would fail...