Amazon feels super confident with the Kindle Fire HD and is moving aggressively against the iPad mini.
The iPad mini got unveiled last week and was predicted to do some real damage to the 7-inch budget tablets. At $329 the iPad mini did apparently nothing to hurt the Amazon Kindle HD. AllThingsD reported that Amazon had the best Kindle Fire sales day after Apple announced the iPad mini. Apparently consumers held off buying the $199 Kindle Fire HD until Apple made the announcement.
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Amazon can not only go with the much lower price, but also the higher screen resolution, better Wi-Fi and stereo speakers. In my opinion Apple should have deployed a Retina Display and make less margin on the iPad mini. The iPad, iPhone and the iPod touch have Retina displays but not the iPad mini. Of course you can expect that in 2013 the iPad mini has a Retina display.
The design of the iPad mini is clearly superior compared the Kindle Fire HD with its small bezels and larger screen. If you are though planning to mainly consuming media on your tablet than the $199 Kindle Fire HD is a bargain. If you like a versatile, user friendly and stylish tablet than the iPad mini is your choice.
You should also note that the 8.9-inch Kindle Fire HD is also cheaper than the iPad mini with $299.