The price makes it very attractive especially in the markets such as India, China, where the volume is expected to be huge. After the smart phones, the tabs are slowing penetrating into the Indian market. Recently Reliance Communication came out with a low cost tab (~USD 300/-) to compete with Apple, Samsung.
So, once Kindle Fire comes to India, it will find some competition already. If it can overtake the low cost tabs because of superior features, it will definitely be a winner.