ok. i am not sure what you are drinking.
Amazon kindle the ebook reader still exists...
the original one is still on sale as kindle keyboard.
they have added touchscreen capable editions known as kindle touch.
and then we have this
tablet which is not exclusively an ebook reading device. it is a content consumption device. content that is fetched from amazon branded services. something that even
Apple has not managed to do properly until now with their iOS devices.
amazon is selling a service, fire is just a medium. the basic idea behind fire is that you would subscribe to
Amazon Prime which would get you access to tons of video content that could be streamed on this device as per your convenience. and it also in addition, supports your kindle ebooks and the amazon cloud player.
this is a very different device than the
ipad which is a proper tablet that can be used to do a lot more (video editing for example).
as for amazon silk it is similar to opera turbo which a lot of people here would admit is a pretty impressive and usable technology.
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also. just like the image your linked to (the first generation kindle). this is just the first generation fire. a 10" model would launch early next year with probably much better specifications. amazon would probably launch new updated models on a yearly basis. and they would slowly make it as awesome as their current generation kindle is.