Certain steps must be followed to defeat an industry leader with head on competition. How can Apple be unseated in the tablet wars? From How Microsoft Can Beat The Mac, iPhone, and iPad.
If Apple is the market leader in smart phones and tablets with iPhone and iPad (with iOS and the ecosystem), a competitor, whether Microsoft, Amazon, or Google, must provide a similar product and experience at a much lower price, or a far better product and experience at about the same price. That’s how incumbents are unseated.
Amazon and Google are attempting to disrupt Apple from the bottom by selling competing products at cost, undercutting Apple on price, but failing to match feature set or ecosystem.