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As I and others have argued, there is no tablet market — there's an Apple iPad market. That said, the Amazon Kindle Fire has come on strong, suggesting that there may be room for an iPad competitor at lower price points (the Kindle Fire sells for $199). We know that consumers will go ga-ga over a cheap tablet that as designed to compete with the iPad. This is why the HP Touchpad found life at $99 and why the BlackBerry PlayBook may gain users if it goes on sale for around the same price. But these were tablets that were envisioned as $500 iPad killers. Who wouldn't want one at a monster discount?
Then there's Barnes & Noble's Nook. There are several models, but the Kindle Fire/iPad competitor (in as much as the iPad can really have a competitor) is the Nook Tablet, priced at $250. Here's where things get interesting. B&N is talking about spinning the Nook off as it's own company. And as DealBook reports, Nook Inc. could be worth almost $1 billion: