I don't think Apple will be unhappy to see this at all . The most recent figures I've seen have the iPad at around 70% market share. There's no chance that will survive after this kind of device appears, but I would guess Apple would be very happy to own, say, the top 40% of the market while the Android OEMs bleed each other dry at tiny margins. Witness Apple's killer execution in the laptop market - and there they'v…
pardon me, I don't understand your reasoning. Why would apple be less happy with 70% of the market than with 40%? Do you mean that you expect the total size of the market to double, and then expect apple to own 40% of it (so they have a total number of customers which is slightly more than what they had initially) ?
So they'll probably try to do the same thing with iPad. They aren't racing to the bottom.