You mean the declining year-over-year iPad sales figures? The tablet market is far from proven. Maybe the last year has been a hiccup, or maybe tablets weren't all they were cracked up to be.
For the past three quarters, Apple has sold more than 12 million iPads a quarter, or an annual rate of >48 million units. Is 48 million units a year not proof of a market?
I got an ipad2, and haven't found a need to replace it yet. The battery's pretty solid, and at this rate, that's likely to define when it's time for a new one.
Most the people I see buying new tablets are essentially buying "my first computer" for a kid. Something to shut them up in the car. And that's not a great market for apple's prices.
So I don't think the tablet is a flash in the pan - but I don't think the initial rush was sustainable either. Now that pretty much everyone who wants one, has one, it'll settle down closer to lifecycle turnover.
And to stray a little closer to on-topic, I'm hoping for the same from the watch. That's really what I'm waiting to find out, and I suspect we won't know any time soon. But that $350 is going to feel much heavier if I feel compelled to replace it as often as my phone. (on that note, I did find it interesting that there was absolutely nothing in the way of tech specs announced on the phone. No mention of resolution, just that it's enough. No mention of speed, or storage. The models are defined by materials, not numbers. Hopefully, this is a good sign that this device isn't meant to fit into a race to double the numbers each year.)
Of course, my Mom has bought 2 iPads after I bought my first one - maybe the iPad is really targeted to folks who don't already have iPhones?