Amazon has entered the tablet battle. This first model is a 7" display, but expect a larger version to follow. Amazon also launched a touch screen version of it's popular e-reader called the Kindle Touch. Adding touch to the e-reader was much needed.Amazon already has strong relationships with content provider (i.e. music and video). So, that plays well with the new Kindle Fire. They will need to do more on the App side before the launch of the 10" model if they hope to compete against the Apple iPad.