Just to follow up on a couple of posts from earlier this month:

Barnes & Noble has around 20% of e-book market share.

As I estimated in my post on market share on August 2, Amazon probably has about 75% of the e-book market, and B&N has most of the rest: I pegged the figure around 18-20%. Today, B&N confirmed (without giving exact specifics, of course!) that their e-book market share is now “higher” than their print market share, which is 17%. Sounds like 18-20% to me!

Explaining the slight dip in Q2 e-book sales.

Last week, I took a look at June’s e-book sales figures and the Q2 2010 numbers, which were slightly below Q1 2010. (While they were still double last year’s numbers, any dip is unusual, as e-book sales have been consistently increasing at a rapid pace.) I looked at a few possible explanations for the dip, including:

1. Lots of people receiving e-readers for Xmas 2009 and buying lots of e-books for their new toys in January 2010.
2. Publishers insisted on agency model (read: higher) pricing starting in Q2, and raising new release e-book prices from $9.99 to $12.99 and $14.99 shockingly decreased revenue (who could have ever seen that coming?).
3. The industry e-book sales figures don’t include sales from independent authors (like yours truly), who are probably earning a larger slice of the pie.

Well, today I see a pair of articles analyzing the dip in Q2 e-book sales and attributing it to: post-Xmas buying and agency model pricing, and that indie author retailers like Smashwords weren’t being included in the data.

Sorry for the “I told you so” post, but it was nice to see affirmation from several different sources of e-book trends I’ve been predicting on this blog for months.

June 2010 E-Book Sales Rise Slightly

I’ve been tracking e-book sales statistics here for a while, following the rise of e-books from less than 1% of the market, to about 1% in 2008, 3% in 2009, and over 8% so far this year. The latest figures are in for June 2010 (and the second quarter of 2010), and they represent a slight increase from the past couple of months. Retail e-book sales clocked in at $29.8 million dollars for June 2010, and $88.7 million for Q2, 2010 (April, May, and June). The June sales are an increase of 118.9% over last June’s numbers, and sales year-to-date are 204.2% higher than the first two quarters of 2009.

I should point out that the monthly and quarterly figures don’t seem to correlate exactly — it seems the IDPF (which releases quarterly figures) adds something to the monthly figures that come from the Association of American Publishers. Please keep in mind that e-book sales figures are only an estimate, and an incomplete one at that. They don’t get their data from e-book retailers (like Amazon, B&N, and Apple), which are notoriously secretive about their e-book sales, they get it from publishers. But they only include figures from certain large publishers, and ignore sales of e-books through smaller channels, such as small presses and independent publishers. For example, I’m just an unknown indie author, but I’ve sold over 6,000 e-book copies in the first 6 months of this year, and they aren’t counted in the numbers above. So it’s safe to say these numbers are inexact and underrepresented.

Those caveats aside, the monthly sales totals so far this year are:

• Jan 2010: $31.9 M
• Feb 2010: $28.9 M
• Mar 2010: $28.5 M
• Apr 2010: $27.4 M
• May 2010: $29.3 M
• June 2010: $29.8 M

And the quarterly figures given by the IDPF, with the totals of the monthly numbers above in parenthesis for comparison:

• Q1, 2010: $91.0 M  ($89.3 M)
• Q2, 2010: $88.7 M  ($86.5 M)

On a positive note, June sales continued to increase over May, which itself increased over the low point in April. On the down side, the strong May and June sales weren’t enough to overtake the Q1 numbers, which were mostly buoyed by huge numbers in January. There are a few possible explanations and observations I draw from this data:

1. Millions of e-readers were sold over the holiday season at the end of 2009, and all those new Kindle and Nook owners needed something to read, and may have bought a lot of e-books in January.
2. The combination of new e-reader owners stocking up on e-books and terrible winter weather may have accounted for very strong e-book sales in the early part of the year, which cooled off as the weather warmed up and more people ventured outside (doing non-reading activities or visiting physical bookstores).
3. Publishers’ insistence upon the agency model (where they forced retailers to raise e-book prices) at the start of April seems to have caused a dip in e-book sales, which are now recovering and possibly continuing their upward trend.
4. The introduction of the iPad (in April) didn’t seem to help e-book sales much, and may instead have hurt them, as some people debating between a dedicated e-book reader and a multi-function device chose the iPad, and then ended up playing more games, watching movies, and spending time on Facebook instead of buying and reading e-books.
5. The trend in May and June is positive, and sales in those two months are higher than any other month except January, which may have been a post-holiday / winter weather spike.
6. On the other hand, Q2 sales are down (or at best roughly flat) from Q1, and e-book sales certainly don’t seem to be increasing at the blistering pace they showed for the past several years (where they doubled or tripled each year). Is it just a temporary dip (due to the agency model and the iPad), or the sign of a leveling off of e-book market share?

To expand a bit on the last point, e-book sales have been increasing so rapidly, that the first 6 months of 2010 have already exceeded all of 2009 ($175.8M vs. $165.8M). And 2009’s sales are over triple 2008’s ($165.8M vs. $53.5M). This is the first quarter where sales have declined in the past three years, but they have bounced around a bit and then continued their upward momentum before, so I think it’s too soon to say that e-book sales have plateaued. Looking at the chart below, it looks more like Q1 2010 was abnormally high than that Q2 2010 was abnormally low. Most estimates still have e-books steadily increasing their market share, and most industry insiders expect e-books to account for 25% of book sales within the next 2-4 years.

Q2 2010 E-Book Sales Cool Slightly From Q1 Pace

I think it’s encouraging to see June’s sales continue the upward trend from May, and hopefully April will just prove to be a one-time dip, caused by agency model pricing. One stat I’d love to get my hands on: what percentage of e-book sales are independent authors responsible for, and how quickly is that number increasing? Maybe the book sales of traditional publishers are flat, but that doesn’t mean overall e-book sales are flat as well.

UPDATE: A few industry analysts confirm my explanations for the dip in Q2 sales.

The new, smaller K3 next to the K2. This pic would be better for my previous post, but I really like it.

Apple claims they could have up to 22% of the e-book market. Barnes & Noble claims a similar share. And what about Sony, or Kobo? And what does that leave Amazon, presumably still the largest e-book seller?

Despite all the numbers being tossed around, I’ve known for a while that Amazon had the lion’s share of e-book sales. Well, today I saw official confirmation from Amazon, which announced that it owns 70% to 80% of the e-book market. When asked about Apple’s 22% claim and B&N’s 20% claim, Ian Freed (Amazon VP in charge of the Kindle) essentially said that he wasn’t calling anyone a liar, but he’s sure of Amazon’s numbers. Well, how can Amazon have 75%, and Apple and B&N both claim about 20%? Freed says that “something doesn’t add up,” but that Amazon is pretty sure the 75% is right. Now, he’s not gonna say who’s wrong, just that (a) Amazon’s numbers are accurate and (b) therefore someone else’s aren’t.

It’s pretty clear to me the exaggerating culprit is Apple. I won’t go so far as to call their figures lies (what’s the saying about “figures don’t lie, but liars figure”?), but their “5 million e-book downloads” number and their “22% of e-books sold” number deserve a second look. First of all, they didn’t specify whether that 5 million figure included free e-book downloads, so it probably did. Maybe they only sold 1/10th that amount. (Which would amount to 500,000 sales across 2 million iPads over two months … or only 1.5 e-books per iPad per year.) As for the 22%? The consensus is that Apple was referring only to sales from Penguin for the month of April … which is coincidentally when Penguin was negotiating new terms with Amazon and their titles were not available on Amazon. Hardly a representative figure for the overall e-book market.

So what are the real numbers? Let’s work from what we know.

Amazon announced last month that it sold 867,881 out of James Patterson’s 1.4 million e-book sales (Patterson is the #1 e-book bestseller). That equates to 76%. Combine that with Amazon’s recent “70 to 80 percent” statement, and I think it’s safe to say that Amazon owns about 75% of the overall e-book market.

As a second data point, I can tell you about my own e-book sales. Now, I’m not James Patterson, but I have sold several thousand copies of my e-books this year, and they are available at Amazon, B&N, Kobo, and Apple (also Sony, but too recently for me to have reliable sales data). And my figures back up Amazon’s; in fact, I sell more than 75% of my e-books through Amazon. Here are my percentages, for the most recent month (June 2010) and quarter (Q2, including April, May, and June):

• Amazon: June (84.7%), Q2 (87.3%)
• B&N: June (13.4%), Q2 (11.2%)
• Kobo: June (1.4%), Q2 (0.9%)
• Apple: June (0.5%), Q2 (0.7%)

I think it’s safe to say that Amazon is still comfortably on top, and that Apple might be exaggerating just a tad, since they don’t even account for 1% of my e-book sales, and my books were on the iBook Store from day one (April 3).

Of course, my numbers won’t match up to industry totals exactly: some places (Amazon) are more friendly to indie e-books and their stores make it easier to find our works than others (*cough* Apple *cough*). And the percentages for Kobo and B&N are generally increasing. B&N in particular surprised me with very strong numbers: in June, I sold almost 1/6th as many books through B&N as I did through Amazon, and my books have been up on Amazon longer (and thus have more reviews, etc.).

Taken together, it’s clear to me that Amazon has the dominant share of e-book sales: about 75%. I believe B&N when they say they’re close to 20% of the market — probably somewhere around 18%. That leaves Kobo, Sony, and Apple fighting over the last 7% or so. And my guess is that Apple is in no better than 5th place right now.

Another interesting tidbit from Ian Freed: 80% of Amazon’s e-book sales are to customers who own Kindles. So much for those “Sure, Amazon is selling e-books, but mostly to people who read on their iPads” articles. Maybe finally people can stop pretending the iPad is an e-reader and start considering it as a tablet computer that’s cool to play games on?

Finally, Freed commented on the agency model and how several large publishers forced Amazon to raise e-book prices from $9.99 to $12.99. According to Freed: “Since some of the publishers have decided to price their e-book above $9.99, we’ve definitely seen a shift of customers going to e-books that are $9.99 or less.” And, I might add, e-books that are just $2.99 as well. =)

UPDATE: B&N released confirmation that their e-book share just surpassed its print share, which is 17%. Sounds like 18-20% to me!

To follow up on my earlier post about print-on-demand paperback self-publishing options, here is a primer to help you create, format, upload, and distribute your writing in e-book format. The best part is that the process I detail below is 100% free. Always be wary of anyone charging you money in relation to publishing your book — not that it’s never a good idea to get some professional help, but you should know exactly what you’re paying for and whether it’s worth it.

The down side to spending zero money on your e-book is that you have to do all the work. Cover design, editing, formatting, uploading, promoting, etc. Don’t expect to spend an hour and have a nice-looking, professionally-formatted e-book. I’ve spent many, many hours getting my e-book files just right (ensuring proper indents, special characters, interior images, and tables of contents in various electronic formats). Hopefully, my experience can save you some time.

The first thing you’ll need is a novel (or short story) in electronic format, probably in Microsoft Word. For purposes of creating an e-book, you generally want to strip out all the fancy formatting you might use in a printed book: get rid of fancy fonts (just put everything in Times New Roman), strange indents or block quotes, and weird symbols. You can keep bold and italics, and smart quotes and em dashes should translate properly, although they sometimes cause problems. It’s generally better to use first-line paragraph indents in Word (instead of hitting the tab key — and never use spaces to indent paragraphs). Do not leave blank lines between paragraphs, since some e-book readers add them and you’ll end up with triple spacing! The basic rule is: the simpler, the better. Various e-book readers will display your text in different ways, and users can adjust font sizes at will, so just forget about the idea of controlling every aspect of how the text will look and where pages within a chapter break (like you would in a printed book), and keep the formatting clean and simple. Do not use multiple line breaks, those look terrible on the screen — use 1 or 2 blank lines and a row of asterisks to indicate page breaks instead.

The second thing you’ll need is a front cover, which should be in 2:3 ratio. It should be at least 800 pixels tall, although you’ll be using the same image (along with a spine and back cover) if you make a paperback, and that requires at least 300 dpi, so it’s best to make it high-resolution to begin with (1800×2400 pixels for a 6×9 paperback). Any interior art (like an “about the author” photo) should be black and white and at least 150 dpi. The less interior art, the simpler it will be.

Amazon

Amazon is the most important e-book distributor; it still probably accounts for somewhere between 50% and 80% of all e-book sales. You publish e-books to the Amazon Kindle store using Amazon’s free Digital Text Platform (DTP) service at dtp.amazon.com. There, you can enter info about your book (author name, description, price, etc.) and upload your e-book cover and interior file. Amazon pays either 35% or 70% royalties; there’s more info in my recent post here.

You can upload the interior file in MOBI (the Kindle’s native format), or DTP will convert it for you if you upload an HTML or Word file. MOBI is best; HTML should be OK, Word is iffy. You can create MOBI files using the free Calibre (Mac or PC) or MobiPocket Creator (PC only) programs. A full MOBI or HTML tutorial is beyond the scope of this blog post — but see below for an easier, non-technical solution.

Smashwords

You’ll probably also want to upload your e-book to the free Smashwords e-book seller/distributor service. Smashwords sells e-books through its own website, but also will distribute them for you to be sold on B&N.com, Kobo, Sony, and the Apple iBook Store. They charge nothing up front, but they take a 15% cut of royalties.

Smashwords has an excellent free Style Guide that will help you prepare your Microsoft Word document for upload. It basically explains how to do what I said above: simplify and clean up your Word document, remove line breaks and extraneous formatting that translates poorly to e-books, etc. You can then upload your Word file and Smashwords will convert that file to all the e-book formats you need, including MOBI and ePub.

The Easy Way

The simplest way to get your e-book distributed as widely as possible and looking pretty good is to: (1) read and follow the Smashwords Style Guide, (2) create a Word document with simple, clean formatting, (3) upload that Word document to Smashwords and let them convert it for you, and (4) take the MOBI file that Smashwords creates and upload it to Amazon’s DTP. You should end up with a nice-looking e-book, and it will be available on Amazon and all the major e-book sellers.

The Perfectionist’s Way

Some of us, especially after you start selling more than a handful of copies, want to craft the most pristine, best-looking, and most full-featured e-books possible. It’s a lot of work and takes a lot of time and effort and research (it’s also beyond the scope of this blog post). But it’s possible to create a proper cover, page breaks, special formatting, interior photos or artwork, a table of contents, and other useful e-book features. This involves creating an HTML file, which is trickier than it sounds, since Word’s “Save As HTML” produces code that needs a significant amount of manual cleaning up. That HTML file is then fed into an e-book creation program (like the two I mentioned earlier) and tweaked to produce a MOBI file that can be directly uploaded to Amazon, and that should retain all your exact formatting and features.

Conclusion

Basically, the aspiring e-book publisher (make no mistake: if you’re doing this yourself, you now become a publisher, not merely an author, and must take on all the duties of a publisher) has three choices: (1) go with a simple, clean e-book that will be OK but not spectacularly formatted, (2) spend a lot more time and effort producing perfect MOBI (and possibly ePub) files, or (3) hire a professional to format the e-book for you. Which option you select (I went with #2) depends on your budget, your technical ability, how much time you have, and how many e-books you realistically expect to sell.

Amazon announced today that their e-book sales have overtaken hardcover sales. The numbers are actually quite staggering: for the latest quarter, Amazon sold 143 e-books for every 100 hardcovers they sold. The numbers for the past month are even more impressive: 180 e-books for every 100 hardcovers — nearly double. Even more impressive is that they aren’t juicing the numbers, as they are not including free e-book downloads (like Apple probably did), and are even including hardcover sales where there is no corresponding Kindle version. Wow.

A few other tidbits:

• Amazon’s e-book sales from the first half of 2010 were triple that of the first half of 2009.
• Amazon exceeded the impressive industry sales stats I mentioned yesterday of 163% increased sales year-over-year in May, and 207% year-to-date.
• It was recently announced that James Patterson was the first author to sell a million e-books, 1.14 million, to be exact. Of those, Amazon sold 867,881 of them (over 76%).
• The growth rate of Kindle sales has tripled since the recent price drop from $259 to $189, and have increased each month in the quarter (April, May, and June). Perhaps now we can stop hearing about how the iPad (released April 3) will “kill” the Kindle?

One interesting note is that Amazon didn’t specify how many of its e-book sales are through the Kindle for iPad app. But considering that Kindle 2 unit sales have been increasing each month, and that the Kindle is better suited for hard-core readers than the iPad, I doubt that Kindle book sales on the iPad were more than a minor percentage.

Either way, very impressive numbers that paint a very positive outlook for e-books and readers.

May 2010 e-book sales: $29.3M

May 2010 e-book sales data is in from the Association of American Publishers, and they are up 162.8% over last May, totaling $29,300,000 for May 2010. Year-to-date, e-book sales are up 207.4% from Jan – May 2009.

The most interesting tidbit is that, at this time last year, e-books comprised 2.89% of all trade book sales. This year so far, they’ve almost tripled, up to 8.48%. That’s not only a huge jump, but we’re really starting to approach very significant percentages (to put that in perspective, New York & Massachusetts combined account for 8.42% of the U.S. population). Some popular books are seeing even higher numbers — e-books accounted for almost 30% of the first-week sales of the #1 NYT Bestseller The Girl Who Kicked The Hornet’s Nest. Those numbers are even more impressive when you consider they’re measuring dollar figures, and e-books generally cost less than paper books, so e-books’ percentage of total copies sold would be even higher.

The monthly e-book sales numbers so far this year:

• Jan 2010: $31.9 M
• Feb 2010: $28.9 M
• Mar 2010: $28.5 M
• Apr 2010: $27.4 M
• May 2010: $29.3 M

I was surprised to see even the small dips in March and April, but May appears to be back on the upswing. Perhaps e-book sales are stronger over the winter when people would rather curl up with a good e-book than brave the snow to head to a bookstore. But, for comparison, the first 5 months of 2010 total $146 M, whereas the total for all 12 months of 2008 was only $56.5M.

Please see this older post for earlier numbers and a more detailed breakdown on e-book sales vs. hardcover, trade paperback, and mass market paperbacks.

Amazon is far and away the #1 e-book seller, and it’s easy to see why: they have the largest selection (over 600,000 titles, plus millions of public domain works), generally have the best prices, the #1 e-book reader (the Kindle), and software that allows you to read their e-books on multiple devices including PCs, Macs, Kindles, iPhones, iPod Touches, iPads, Blackberries, and Android cell phones (coming soon).

To buy your first e-book from Amazon, it only takes 3 simple steps:

Step 1: Create an Amazon account. (Already have one? Great, proceed to step 2!) To create your Amazon account, simply visit www.amazon.com and click the link at the very top where it says, “Hello. Sign in to get personalized recommendations. New customer? Start here.” It will ask you to enter an email address and ask if you have a password. You’ll select “No, I am a new customer.” Then, simply enter the requested information and create your Amazon account.

Step 2: Download and activate the Kindle App on the device you’d like to read on. Visit this page and download the app for the computer or smartphone you’d like to read your e-book on. Once downloaded, you will need to run the application and “register” it to your Amazon account. Just enter the email address and password for the account you created in Step 1.

Step 3: Shop and buy your e-books! Amazon sells countless e-books, most costing far less than printed books. Just use the search function near the top of the page (select “Kindle Store” from the drop-down menu) to find what you want. Or, go straight to a particular book (perhaps my new novel, The Twiller, coming out June 18?). Click on the big orange button in the upper right that says “Buy now with 1-Click.” It will ask you which device you want to deliver your purchase to. Choose the device you registered in Step 2. Then, complete the checkout process.

That’s it! Enjoy your e-book! Just email me or leave a comment if you have any questions.

400 more years! 400 more years!

I’ve known for some time that the large print publishing companies are not fans of e-books. Many people wondered how publishers could be so silly, pricing e-books above (sometimes well above) the price of paperbacks, delaying e-book releases, providing simple OCR scans of paper books (instead of properly formatting or often even proofreading their e-book releases), blocking useful features like text-to-speech and lending, and infesting e-books with invasive copy protection (DRM) that annoys legitimate users. But I knew it wasn’t that publishers didn’t “get” e-books … OK, it wasn’t just that publishers didn’t get e-books: they are actively trying to forestall e-book adoption as long as they can. Why? Because there are 6 huge, multinational publishing conglomerates on top of the current food chain, divvying up the lion’s share of the $25 billion/year book industry, and a change as dramatic as the switch to e-books threatens to shake up their industry. Some publishers, by undergoing lots of painful downsizing, restructuring, giving up large New York offices, and doing some long-term thinking at the expense of this year’s profits, might remain relevant in the publishing landscape of the future. But not all will. So I’ve said before that they are forestalling that day of reckoning as long as they can. (They must understand how typewriter manufacturers and buggy-whip makers felt.)

But I’ve never before seen them admit it. See, they’ve always claimed to be in favor of e-books, since it’s clear that more and more authors and readers (their supposed allies and customers) like them. But now, David Shanks, CEO of Penguin Group (one of the “Big 6″ publishers) came right out and admitted that “We need to protect as long as we can the apparatus that sells physical books.”

In other words, it’s not about innovating, or even keeping up with changing times and technologies. They’ve stopped pretending they’re doing this for authors. They’re no longer claiming that they’re just trying to “preserve the value of e-books” or create “sustainable pricing” — for the authors, of course. They’ve finally admitted they not only don’t care about the readers, but they’ll do whatever they can to hold onto their position, at the expense of authors and readers and progress. As I said all along, it’s really just about protection. Not protecting literature or the future of books, just protecting themselves and their bottom lines.

When big publishers (like Jonathan Galassi) start talking about how they need to “maintain the value of time-honored roles,” I think it’s safe to say the writing is on the wall. (Although they probably get a sympathetic look from alchemists, blacksmiths, and cave-painters.) Companies that look to the past and seek to maintain the status quo don’t even notice the innovators (the Amazons and the Googles) as they rush past them and into the future.

As one last example of the “e-books are the enemy” attitude, consider this exchange between author Scott Turow and Galassi:

Turow: ”Why did publishers agree to allow e-books to be available at the same time as paper books?”

Galassi: “It was a mistake to let Amazon put out e-books simultaneously and charge the price it did [$9.99]. It will have a negative effect on the paperback.”

So, there you have it. It was a mistake to let the largest bookseller in the world sell books to readers who wanted to buy those books (publishers should have delayed them and charged readers more instead). Why was it a mistake? Because it was bad for readers? For authors? No, bad for the paperback. Which really means: bad for the current crop of the Big 6 publishers, whose entire business model isn’t about selling literature, it’s about moving paper. The only thing that confuses me is, if they clearly care more about paper than they care about authors or readers, why are we supposed to care about what happens to them?

Quarterly E-Book Sales, Q1 2008 -- Q1 2010

The sales data is in for book sales in March, and the news for e-books continues to impress. Year-over-year sales of e-books are up a staggering 251.9%. This, after e-book sales nearly doubled from 2007 to 2008 and then more than tripled from 2008 to 2009.

According to estimates by the Association of American Publishers, e-book sales totaled $28,500,000 in March, for a total of $89,300,000 for the first quarter of 2010.

Keep in mind two things: first, that these numbers do not include sales of independent authors (like myself). True, I won’t move that bar much by myself, but with tens of thousands of authors like me, the effect could be significant. Second, these numbers do not include any sales from the Apple iBook store or through the Kindle for iPad app, since the iPad wasn’t released until April 3.

Even when comparing e-books to print books, the news is still promising. Two major publishers (Hachette and Simon & Schuster) reported that e-book sales for Q1 2010 constituted 8% of their total revenue. Keep in mind that (a) not all printed books currently make sense as e-books (children’s books, cookbooks, picture books, etc.), (b) not all books that do make sense have been released in e-book format yet, and (c) that e-books generally sell for less than printed books, so 8% of revenue would mean a higher percentage of unit sales. It is reasonable to conclude that, of books with both a printed and e-book counterpart, e-books could make up anywhere from 10 to 20% of unit sales. Amazon has already reported that their e-book sales account for about 40% of their total book sales (for titles with both versions available).

Just to keep the numbers in perspective, let’s look at overall print book sales compared to e-book sales. While it’s true that the percentage increases for e-books have been very impressive, they had started from such a small fraction of print book sales that they still paled in comparison. Well, what if I told you that, in March 2010 (the latest month data is available), total e-book sales were over 53% as much as total mass-market paperback sales. Then, what if we compare the year-over-year 251.9% increase in e-books with the 18.1% decrease in mass market sales from last year. Which would you bet on being higher next year? How about this Christmas?

Here’s the full chart (with year-over-year growth percentage over the columns):

Total March 2010 Book & E-Book Sales

True, e-books have a ways to go before they surpass combined print sales. But comparing the rate at which those numbers are changing (e-book sales exploding while print sales stagnate or decrease), considering the proliferation of new e-book readers like the iPad, and keeping in mind that more bookstores close every day, what do you think this chart will look like next year? How about 3 or 5 years from now?

Exciting times….

Now that we’ve had the iPad for 10 days, I can give a more thorough review than my first one. Probably the best thing I can say about it is that it has kept us up even later than usual on more than one night … and that we’ve started calling it the “CrackPad.” Downloading apps, playing games, watching videos, and surfing the ‘Net becomes more addictive on the touchscreen, hand-held device. Aside from games, some of the apps are really useful, like the excellent WeatherBug app (that auto-detects your location and gives hour-by-hour forecasts, moving radar images, and pictures from nearby cameras), talking to someone on Skype is more fun than on a computer (too bad there’s no webcam), Shazam listens to songs playing on the radio and identifies them, and NetNewsWire lets me read my blogs and RSS feeds on-the-go. And my wife will no doubt be well entertained on her next flight.

On the down side, the iPad’s 24-ounce (1.5-pound) weight becomes quickly apparent when holding it–it really needs to be rested on a knee or lap, which can necessitate a hunching posture. It gets even heavier when you add a sturdy case, a necessity for something so expensive, slick, and fragile.

Of special interest to me is the question: How good is the iPad as an e-reader? And the answer is a pretty good one, with some caveats. First of all, I find it better for shorter reading (under an hour), as the backlit LCD screen is simply not as easy on the eyes as e-Ink displays or actual paper. And the weight is quite noticeable when reading, especially compared to my Kindle 2. However, color covers look gorgeous, and the iBook reading app is very well done. The iBook app mimics the look and feel of a book, especially when turned sideways to display 2 pages at once. It is simple to purchase books, arrange them on your bookshelf, open them, change font sizes, look words up in the dictionary, and turn pages. One note: while the cool-looking page turns (you swipe your finger and the slightly see-through page will follow the movement of your finger) are fun to play with at first, I very quickly desired the Kindle’s one-handed button press for page turns, which I’m glad to say you can do by tapping your thumb in the iBook app. It’s funny: people talk about e-readers mimicking books, but I already find turning pages too “cumbersome” now that I’m used to one-handed operation!

As for where to buy books: while the iBook Store is not as well-organized as Amazon’s, and doesn’t have as many titles (30,000 to almost 500,000), this ironically becomes an iPad advantage because you can use the iBook store and/or read Amazon books through Amazon’s Kindle for iPad app, which is also excellent.

As for the inevitable comparison to the Kindle 2, I’ll go point-by-point, roughly in order of importance to me (iPad advantages in bold, K2 advantages in italics):

1. The iPad’s backlit LCD is like a computer monitor, not as easy on the eyes for long reading as the K2’s e-Ink or paper.
2. Reading is very simple and intuitive–I’d rate this one as a tie with the K2, both are excellent.
3. Weight (24 ounces) makes the Kindle (only 10 ounces) feel like a feather.
4. The iPad’s $499 starting price is almost double the K2 ($259).
5. The K2’s 2-week battery life is in another league than the iPad’s 10-12 hours.
6. The iPad’s color screen makes covers and your “bookshelf” look great.
7. Although I’ve become used to the Kindle’s “locations,” the iPad’s page count (and # of pages left in a chapter) is more intuitive.
8. The current Wi-Fi iPads lack the K2’s free 3G wireless coverage. The forthcoming 3G iPad will cost at least $629 + $30 per month.
9. The iPad starts with 16 GB of storage, while the K2 only has 2 GB. But both are plenty for thousands of books (the iPad will undoubtedly get filled with other stuff).
10. You can attach the K2 to your computer via USB and drag-and-drop e-books into it. The iPad requires fussing with iTunes, which is a huge hassle when trying to connect to computers other than your own.
11. Being able to purchase books from Amazon or the iBook Store may give you more options; however, most books should be the same price in either place.

In summary, it all comes down to what you’re looking for, and how serious a “reader” you are. It’s clear to me that the Kindle 2 is a superior e-reader. It’s much lighter, the e-Ink display is better for long reading sessions, it costs a fraction of the price, and the battery lasts forever. But the iPad makes a fine device to do a little light reading with from time to time. And, of course, the iPad plays games and movies and all sorts of legitimately cool stuff. But those cool things actually become a distraction as your “book” starts beeping and pinging at you when you get an email or Facebook update–the Kindle doesn’t do that. And, if you’re settled on the couch trying to escape into a good book, the lack of distraction can actually be a good thing.

UPDATE: No wonder we had been staying up later — according to researchers, using the iPad late at night disrupts your ability to fall asleep. (Luckily, e-Ink displays like the Kindle’s are safe.)