That's how Apple would define it. Lexus doesn't care what Kia's building, they care what BMW is.

True enough, but not everyone needs (pr wants, considering price) a Lexus, some people only need and want a Kia, as long as it meets certain requirements.

However, in the market today, for all practical purposes, almost all you can get in the tablet space is the Lexus (iPad), when a lot of people actually want a Kia (in this case the Pandigital Novel).

So as time goes on, this is definitely relevant to Apple. I wouldn't classify it as a "threat" quite yet, but over time products like this will at the very least remove a great deal of their pricing power.

And, of course, Apple relies on the image of a refined taste, so its customers will have the illusion that by having an iPad, they are on the same league as those who get driven around in Maybachs.