Tablet PCs will take a chunk of the market. People who only use a pc to browse the internet on occasion will only use a tablet. There are a couple of good uses for a tablet: augmented reality, looking at patient info in a hospital. I'm sure you could think of some unique uses. You could have a augmented reality servicing manual.
Apple will probably win because of marketing. When someone thinks of a search engine they think of Google. Now when somone thinks of tablet they will think iPad.