Kindle Fire HD is Amazon's Best Selling Device, Will iPad Mini Extinguish Demand?

The good news for Amazon is that its Kindle Fire HD devices are apparently selling like gangbusters. Since going on sale a little over a month ago, Amazon reports the Kindle Fire HD is the best selling product on the company's entire site, which is saying something when you consider the number of items Amazon sells. So what's the bad news?

Well, Apple has scheduled a press event for later today, and unless all the rumors and speculation have been way off base (highly unlikely), the Cupertino company is going to make a bid for the smaller size tablet market by introducing the iPad Mini.

Kindle Fire HD

Based on early reports, the iPad Mini is likely to launch with a 7.85-inch display. Rather than quibble over fractions of an inch, let's just say Apple is going to be competing in the 7-inch tablet space, a sector currently dominated by Amazon (Kindle Fire HD), Barnes & Noble (Nook Tablet), and Google (Nexus 7). Those are the Big Three, as it were, but will they be relegated to also-rans?

That depends on what hardware the iPad Mini comes toting, for starters. Just as important, however, is what price point(s) Apple settles on. You can purchase a Kindle Fire HD or Nexus 7 for as little as $199, and it's generally expected that the iPad Mini will run a little higher, but by how much? If the iPad Mini is priced at $249, it could still make a dent in the 7-inch market. At $299 and higher, it becomes a tough sell.

Expect Apple to launch more than one iPad Mini model, with pricing premiums attached to SKUs wielding more storage and possibly separate models with 4G LTE connectivity.

Stay tuned, as we'll be covering Apple's press event later in the day.