Apple CEO Tim Cook believes the forthcoming Amazon Kindle Fire tablet does not pose a serious threat to the iPad, according to an analyst who recently met with him.
Ben Reitzes of Barclay's Capital, claims that both Cook and Apple CFO Peter Oppenheimer aren't worried, despite the $199 Android tablet costing less than half of the cheapest iPad.
In a recent meeting Reitzes says the Apple pair made it clear that they believe the Fire will simply cause more Android fragmentation, which could drive buyers into the stable arms of iOS devices.
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Could fuel further fragmentation
"While the pricing at $199 looks disruptive for what seems to be the iPad's most important rising challenge, the Amazon Fire - it is important to note that it could fuel further fragmentation in the tablet market - given it represents yet another platform," said Reitzes.
"While compatible with Android, the Apps work with Amazon products
"The more fragmentation, the better, says Apple, since that could drive more consumers to the stable Apple platform."
The Android platform has been heavily criticised in the past for the number of different versions and user-interfaces floating around on its various devices.
Apple's iOS devices all use the same iOS 5 software which brings a unified experience for users, and it appears Cupertino big wigs are banking on that to stave off Amazon's low-cost challenger.
The Kindle Fire will launch in the United States on November 15th, but the company has not yet indicated when the device will arrive in the UK.