Apple reached a rare milestone last week, it was worth more than $500 billion (Dh1.8 trillion) — a value that has been achieved by only six other US companies in American corporate history. But as the company prepared to launch its third generation iPad yesterday, it did so at a time of significant competition, facing far more rivals than at the launch of the iPad 2 some 18 months ago. Less expensive tablets, that run versions of Google\'s Android system, such as Amazon\'s Kindle Fire, have been attracting customers that are not looking to shell out over $500 for a device. But Tom Mainelli, an analyst for IDC Research, said Apple probably isn\'t fazed by the competition. \"I don\'t think Apple\'s particularly interested in competing with a $199 tablet,\" he said. \"Amazon has staked out the low end of the market; Apple has always been the premium-priced product.\" Speculation on the features of the iPad was rife yesterday. Sarah Rotman Epps, an analyst for Forrester Research, said hardware features aren\'t that important to tablet buyers. \"It\'s about the services — what you can do with the device,\" she said in a blog post. Apple\'s competitors have slowly come to realise this, but only after bringing out dozens of tablets with whiz-bang features like 3D cameras. The competitor that\'s done the best is the Kindle Fire which as well as being cheaper than the iPad, is tied into Amazon\'s book, movie and music stores, making it an easy route to entertainment, just like the iPad. Still, the Kindle Fire has a long way to go. Epps estimates that Amazon sold 5.5 million Kindle Fires in the fourth quarter of last year. Meanwhile, Apple sold 15.4 million iPads, and has sold 55.3 million in total. According to Canaccord Genuity, 63 per cent of the tablets shipped last year were iPads. The only competitors with more than 5 per cent market share were Amazon and Samsung Electronics Co. One big unknown is whether Apple will keep the iPad 2 in production at a lower price, like it kept the iPhone 3GS after the launch of the iPhone 4. If so, the iPad 2 could carry a price tag that would make consumers think twice about buying a Kindle Fire. Another big unknown is whether Apple will reveal its rumoured foray into making TV sets. Some have speculated that the invite to the Apple event, which said \"We have something you really have to see,\" points in that direction. From gulfnews