FUD creeping in at Apple?

"Apple executives are saying that the low priced Kindle Fire could actually be a good thing for the iPad because it introduces another level of fragmentation in the Android platform."
Read more: http://www.businessinsider.com/barclays-apple-meeting-2011-11#ixzz1cfrZyNV0

Why even address an unreleased competing product? This reeks of fear.

I fully expect Apple will release a lower-priced 7" model of the iPad to compete with Android in that space. It's easy to see how a smaller version fits into the product line, especially when you look at how the iPod product line has changed over the last decade. And it makes sense, since in many ways they were defining a new type of device: the portable multimedia player.

With the original iPad, Apple was defining a new category of computing, so it made sense to focus on what they determined to be an optimal screen size for the experience. Now that the iPad is a runaway hit, and the only place that Android tablets seem to be getting any traction is at the 7" screen size.

My guess? When the line expands, we'll see an "iPad mini" with a 1024x768 resolution 7" screen, along with an iPad HD sporting the anticipated Retina display at double the resolution.