I have always had the opinion that the IPad was something new and really doesn’t replace any current products on the market. Tablets have been around for years and just never had the Brand or Marketing like Apple. I believe it would not have been as successful if not for the ITouch and IPhone products that came before it. These products set the stage for this new entry into the market. The key advantage this gave the IPad was the Ego systems that was in place, you could take it home and start downloading and using it right away. Playing with it!
Take a read of the following article and it really details the market and where the Ipad sits today – might be different down the road, but it’s good for today.