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The Kindle isn't really in competition with the iPad. The Fire isn't an "iPad Killer", but an attempt to take some of the tablet market. With tablets, and computers in general, the next model always offers some new features that seriously tempt people. Your old 486 computer may do the tasks just fine that a computer from 20 years ago would be asked to do, but few people would want one today, they need their computer to do more. But an e-reader is like a can opener. It does one task and does it well. Most will only buy a new can opener when it no longer works, and a lot of people feel the same way about their e-readers. If it still works for reading books, who needs a new one? Sure, some people want the newest model, but a whole lot of people just keep using single-function devives until they no longer work.
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