Apple vs. Amazon

 Posted by at 7:57 PM  Tagged with: , , , , ,
Feb 162011
 

You didn't really think they could just get along, did you?

It was only a matter of time.

Once Apple entered the e-book business back in April with the launch of the iPad and the iBook Store — and partnered with publishers to cram the agency pricing model down Amazon’s throat — a collision like this was probably inevitable. After all, Apple has been selling e-books to be read on iDevices through the iBook store, while Amazon has been selling e-books for those same iDevices through the Kindle for iPhone/iPad apps. And, it’s pretty clear which of those two e-book retailers has been more successful: Amazon still commands the strong majority of e-book sales, while Apple’s iBook Store has floundered. So, is Apple OK with Amazon moving in and selling all those e-books to iDevice owners?

Apparently not. In the past week, Apple has started “clarifying” its position on e-book stores (and magazine and newspaper publishers) selling content through iOS apps to (what Apple sees as) Apple’s customers. The first salvo was when Apple denied the Sony E-Reader app, claiming that it violated guidelines related to in-app purchases. Over the ensuing week, Apple’s position became more clear, as it is apparently gearing up to require vendors who sell content to do so through in-app purchases. At issue is the current practice of many current apps (like Kindle for iPhone) that take users to Safari to purchase e-books over the Internet, bypassing Apple’s app store and its 30% cut of all app and in-app purchase proceeds. And Apple has given existing apps until June 30 to comply with the new requirement, which is that any app offering out-of-app purchases (like those over the Internet), must also offer an in-app option (at the same price). Of course, the in-app option (which will just be a click, attached to your existing Apple account and payment method) will be much more convenient for most users than launching a website and signing in. (Crazy side-note: Apple licenses Amazon’s patented 1-Click purchasing system.) Even worse, it appears from Apple’s latest statements that apps can’t even link to outside stores (like Amazon), but only offer the in-app purchase!

“Our philosophy is simple — when Apple brings a new subscriber to the app, Apple earns a 30% share,” said CEO Steve Jobs in a statement Tuesday. “When the publisher brings an existing or new subscriber to the app, the publisher keeps 100% and Apple earns nothing.”

“Apple does require that if a publisher chooses to sell a digital subscription separately outside of the app, that same subscription offer must be made available, at the same price or less, to customers who wish to subscribe from within the app.”

Think about that for a minute: Apple will now require e-book vendors (Amazon, B&N, Sony), magazine publishers, streaming video apps, and anyone else who sells anything that can be accessed through an App Store app to remove external Internet “buy links” and instead offer an in-app purchase option. And Apple will get 30% of all of those sales. In the case of e-books, the agency model agreements already specify that e-book retailers only get 30% of the sale price, which means that Apple would get all of the profit (and then some, since Amazon has some costs) from e-book sales: 70% would go to publishers, and 30% to Apple, with Amazon getting nothing. And while it currently appears that customers could choose to bypass the one-click in-app purchase and buy directly from Amazon’s website instead (from their computer, or by going to Safari themselves), how many will? And what is to stop Apple from preventing external purchases from being usable inside an app?

Obviously, Amazon can’t let this stand. There’s no way they’re going to agree to create the world’s largest e-book store, write an iOS app, deliver e-books to customers, and provide tech support for purchases, yet give all the revenue from Kindle app users to Apple. But, Amazon has promoted the “Buy Once, Read Anywhere” tagline, as it lets users read e-books purchased from the Kindle Store on Kindles, Macs, PCs, smartphones, Android, and Apple iOS devices. Yes, pulling the Kindle for iPad app would hurt Apple and the iPad’s already-damaged reputation as an “e-reader” and would tick off customers who bought an iPad thinking they could unify their Amazon, B&N, Sony, Kobo, and Apple e-book libraries on one device, but it would also tick off Amazon customers and Kindle owners who like to read from time to time on their iPhones. It’s pretty much a lose-lose situation, but Apple seems to be forcing the issue.

What’s the upshot of all this for iDevice owners? Will their iPhones and iPads become less useful overnight? I think being able to access Kindle e-books on the iPad was an important selling feature for Apple. How much other content will iDevice users lose access to? What other apps will this new policy affect? Would you want to develop an iOS app right now?

Even more disturbing are the future ramifications of such a move by Apple. If Apple considers iOS users as its customers for third-party goods (in a way that Dell, for example, never does when you use one of their computers to buy something online), what else will they try to “tax”? Now that Apple has earned a dominant position in the mobile app field (the Apple App Store is far ahead of the Android Marketplace or any competitors), how long until it starts changing the terms on developers? Although those developers provided a large portion of the value of Apple’s “platform” (the iDevice + wide variety of cool apps in the App Store) and helped make it #1, now that Apple is the dominant smartphone and tablet computer platform, it doesn’t need any one developer nearly as much as that developer needs Apple. What’s Apple’s next move here? Perhaps requiring exclusivity from its apps to prevent Android from becoming a threat?

This new Apple policy is a pretty disturbing move (that is almost certain to hurt consumers, however it shakes out), but even more disturbing is how Apple has morphed from the plucky underdog to the ruthless, monopolistic giant corporation that uses its power to squash competition. To complete the irony, perhaps the best hope to tame the Apple juggernaut is a partnership between Nokia and a plucky upstart in the mobile operating system field: Microsoft.

 e-books  Comments Off on Apple vs. Amazon
Feb 162011
 

Who's more serious about reading, Amazon or Apple?

So, Apple burst onto the e-book scene almost a year ago with the release of their iPad and the iBook Store in April. But, as of 6 months ago, Apple was still only a minor player on the e-book sales scene, with Amazon dominating 75% of e-book sales and B&N with another 20% or so. Apple was hindered by (a) being late on the e-book scene, (b) the fact that reading on a backlit LCD screen just isn’t as “magical” as Apple wants you to believe, and (c) the iBook Store doesn’t have the selection of other e-book stores, with no Random House titles and only about 30,000 total in-copyright titles (compared to Amazon’s 800,000 or so).

Even iPad owners prefer Amazon's Kindle store

Adding insult to injury, a Codex Group survey from November 2010 found that even iPad owners were buying more e-books from Amazon (which can be read on Amazon’s Kindle for iPad app) than from the iBook Store: Amazon e-books accounted for 40% of iPad users’ purchases, while Apple e-books were 29%.

Most observers have noted that Apple’s e-book business is struggling, including The Unofficial Apple Weblog, who looked at the iBook Store 6 months after launch and found that:

I figured that this would be a good time to see just how the iBookstore has progressed. The answer, in a word: poorly … very poorly.

Or how about this review?

However, after six months of offering up downloadable text content to capable iOS devices, it appears that the once seemingly mighty contender hasn’t been able to do much more than land a few rabbit punches. Despite the iPad’s rabid popularity, neither major publishers, nor the book buying public have embraced iBooks.

After more than half a year online, Apple’s iBook Store is still only offering up approximately 60,000 titles. When held up against the 700,000 titles offered by Amazon for their Kindle reader software and hardware solutions, Cupertino’s library looks pretty weak. Did we mention that about half of the titles available as iBooks are also available from Project Gutenberg? C’mon Steve, this is embarrassing.

And that came from the staunchly pro-Apple folks over at Mac Life. Ouch.

So, did Apple take these criticisms to heart and improve the iBooks experience? Did they prove they’re serious about the e-book market? Has Apple gotten Random House to sign on? Increased their selection to at least keep up with Amazon’s rate of growth, let alone closed the gap? Improved their store navigation or implemented a recommendation engine? What have we heard from Apple about the iBook Store in the months since those less-than-glowing articles were written?

Nothing. Well, I can’t say I’m shocked, since the whole iBook Store and marketing of the iPad as a reading device never seemed sincere to me. It’s just so far inferior to a Kindle 3 as a reading device (harder on the eyes, triple the weight, far less battery life, etc.), it’s not really in the discussion for me. Add in the fact that the K3 is around 1/4th the price ($139 for Wi-Fi, $189 for free-for-life 3G), and there’s no comparison when it comes to reading.

More telling is the fact that Apple pretty much abandoned the marketing talk about the iPad as an e-reader soon after launch. I always thought that was just a marketing ploy, a way to position itself as the #1 seller in the e-reader category (a “Kindle killer”), instead of as a minor player in the much larger laptop or netbook market. And Apple hasn’t mentioned the iPad’s e-reading capabilities in a long time, they haven’t added titles, they haven’t upgraded the shopping experience at all, and they’ve made only minor updates to the iBooks app. Contrast that to Amazon, which incessantly markets their e-readers as devices focused on reading, has commercials touting their outdoor reading ability as superior to the iPad, upgrades their Kindle software and Kindle apps often, adds about 30,000 new titles every month, and even came out with the much-improved Kindle 3 in August. As a reader, you know Amazon is devoted to reading, e-books, and the Kindle. And Apple never really cared about reading to begin with, and it shows. After all, Steve Jobs dismissed the Kindle and reading in general as recently as 2008, saying that:

“It doesn’t matter how good or bad the product is, the fact is that people don’t read anymore. Forty percent of the people in the U.S. read one book or less last year. The whole conception is flawed at the top because people don’t read anymore.”

Did anyone really think he so dramatically changed his mind and did a complete 180 between that statement and when he made the iPad (which came out in 2010 but was probably in development even when Jobs uttered those words)? Or was “e-reader” just a convenient marketing label Apple decided to attach to a multi-purpose device designed primarily to do other things?

Apple iPod Touch and iPod Refresh

 Posted by at 9:19 PM  Tagged with: ,
Sep 012010
 

Apple's New iPod Line: the Shuffle, Nano, and Touch

Apple today announced a refresh of its iPod line, with new models of the iPod Shuffle, iPod Nano, and iPod Touch.

The iPod Touch adds the iPhone’s 960×640 IPS “Retina” display, A4 processor, and gyroscope. It also adds front- and rear-facing video cameras, designed for use with Apple’s “FaceTime” video chat software. Prices are $229 for the 8GB model, $299 for 32GB, and $399 for 64GB.

The iPod Nano has the most drastic change: its size was cut roughly in half so only the screen remains (no more click wheel). The screen is now a touchscreen and has a home screen with specialized “apps” (like audio and photo players), but it won’t run normal iPhone apps and games. It gains FM radio capability and Nike+ pedometer support, but it loses its camera and the ability to display video. The prices are $149 for the 8GB version and $179 for the 16GB. It now has a clip like its smaller Shuffle sibling.

Finally, the iPod Shuffle actually gets its clickwheel back, but otherwise remains largely unchanged from the last version. It holds 2GB and costs $49.

Of note, the iPod Classic hums along unchanged, at $249 for a model with a 160GB hard drive.

 Uncategorized  Comments Off on Apple iPod Touch and iPod Refresh
Aug 022010
 

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!

Jun 092010
 

Apple claims 5M e-books sold, 22% market share

A couple of days ago, Apple held its yearly conference and announced the new iPhone 4, to be released June 24. At the same time, modern iPhones will also be able to update to the new iPhone OS 4.0 (now called “iOS”). The new iOS offers multitasking and other new features, and also brings the iBooks e-book reading app and the iBooks Store to the iPhone and iPod Touch.

Apple also announced that they have sold 2 million iPads in the first 65 days, and had 5 million e-book downloads in that time. Now, Apple is famous for hype and the “Steve Jobs Reality Distortion Field,” and they like throwing out impressive numbers that may or may not mean what they seem. For example, Apple neglected to mention how many of those 5 million e-books were paid vs. free downloads. If they’ve sold 3 or 4 or 5 million e-books in their first 2 months, that’s a big deal. But if they sold 500,000 and gave away 4.5 million free downloads … not so much. Also, the numbers work out to 2.5 books per iPad — or only about one book a month, which suggests that iPad owners are not generally voracious readers.

Apple also announced that the publishers they work with claim Apple already accounted for a staggering 22% of their e-book sales, but this number also wasn’t explained and must be taken with a grain of salt. First, many publishers don’t release sales numbers, nor do big e-book sellers like Amazon. Second, Apple only has 5 of the 6 largest publishers’ titles in the iBook Store, but lack the largest (Random House) and most smaller publishers; the “Apple 5” account for less than 50% of all e-book sales. The iBook Store currently has about 30,000 paid titles, whereas the Kindle Store has over 600,000 (20x more). Also, one of the “Big 6,” Penguin, had a disagreement with Amazon for much of the last 2 months and its new titles weren’t available in the Kindle Store. So maybe Penguin told Apple that they accounted for 22% of Penguin’s e-book sales (when its newest, most popular titles weren’t available on Amazon)? But I have a hard time believing that the iPad could do so well against Amazon (who had a 70%-90% e-book share), B&N, Sony, Kobo, and all the other established e-book retailers and jump out to a 22% share right out of the gate. Keep in mind that not only does Amazon have an estimated 3 million Kindles sold, but people can read Kindle titles on Kindle for PC, Mac, Blackberry, iPhone … and iPad. In any event, the numbers sound impressive, even if they are exaggerated a bit. I’m interested to see if people will really read much on the iPad. I’ve talked about reading on the iPad before, and concluded that I prefer the Kindle for pure reading, and that the iPad’s many distractions seem to appeal to a different demographic than serious readers.

Whether people will read or not on iDevices will soon become a huge question in the industry, because iOS 4.0 will bring the iBook reader app and iBook Store (where you can sample, purchase, and download e-books) to the iPhone and iPod Touch. I don’t know how many people read novels on their phones, although surveys always surprise me with how many people do it (personally, I prefer a larger, e-Ink screen to read on). But, even a relatively small percentage of iDevice owners could be huge, since there are nearly 100 million iPhones and iPod Touches out there, and Apple has 150 million credit cards in its 1-Click database.

In other news for the iBook app, a forthcoming update will add features that Kindle (and Kindle for iPhone/iPad app) users already have: bookmarking, highlighting, and syncing your position in your books across all your devices — so you can read to Chapter 4 on your iPad, then grab your iPhone and automatically pick up where you left off. Another cool feature is that the iBook app will also read PDFs and store them on a separate virtual bookshelf from your e-books.

In any event, it’s exciting news, since the reach of e-books has just expanded from a few million people (who owned Kindles, Nooks, and iPads) to 100 million iPhone users. With the ability to browse the iBook Store, make a 1-Click purchase (from a trusted source and without having to make a new account), and get instant wireless e-book downloads, will this be the tipping point for the wide-scale adoption of e-books? Time will tell….

 news  Comments Off on Apple News: iPhone 4, iOS 4.0, iBooks Update, 5M E-Books
Apr 132010
 

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, but with some important 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.)

Apr 042010
 

You need something to read on your new toy, right?Yesterday was my wife’s birthday, and we somewhat spontaneously decided on her birthday present the night before: an iPad. We hadn’t pre-ordered, so we stayed up all night and went to stand in line at the Apple Store at 6:30 AM. All went well, and we came home with a new iPad (Wi-Fi model) yesterday.

Many have touted the iPad as a “Kindle-killer” and the next big thing in e-book reading. Others say it’s just a big, overpriced Apple iPhone / iPod Touch. Others consider it aimed at a totally different market than the Kindle. So, my early thoughts (after only using it for a day):

So far, I like it more than I thought I would. It’s a good size for web browsing, pics, and stuff. And gaming on it is really fun (we did not have an iPhone or iPod Touch before). Now, we didn’t leave the house yesterday, so the size and weight and lack of 3G connectivity has not been an issue. And it’s still new and “cool” … will we still use it as much in a few months?

One big reason I like it is because the battery is impressive. Reviews said it gets 11-12 hours of movie watching, and with heavy use yesterday it lasted all day, probably 12 hours or so before we recharged it. That’s very good — although not Kindle territory.

As for reading books, I poked around on the Apple iBook Store (and was pleased to see Right Ascension and Declination show up on there, for just 99 cents each, on the day of launch!). I haven’t tried reading on it for any length of time (I’ve mostly been setting it up, downloading apps, and playing games). The bigger screen is nice, and a good battery is a plus, and the navigation seems simple (like the Kindle). Things like page turns, going to your library and picking a book, dictionary lookups, and changing font sizes are all easy and intuitive. On the minus side, it’s heavier than a Kindle and 12 hour battery life is a far cry from 2-week battery life. Also, there is no text-to-speech, as there is on the Kindle. And I still think it will be much easier to read on the Kindle’s e-Ink display.

Also, to compare apples to Apples (as it were, capitalization intentional), you’d have to compare the Kindle 2 (at $259) with an iPad 3G with wireless built in ($629 + $720 for 2 years of service = $1,349). So it’s really not in the same ballpark as a reader. Yes, you may be able to find other uses to justify the price differential, but I don’t really see them as direct competitors, even though the media is obsessed with the comparison.

Now, will people read on the iPad? That remains to be seen. I don’t really think so, although even a small percentage if there are tons of iPads out there could add up to something. I still think real readers will get a K2. I will say one downside for independent authors: Amazon is great at helping people find stuff with their “people who bought this also bought,” their genre best-seller lists, etc. But on the iPad, unless you’re one of their 5 or 10 “featured” big-name books, you gotta search for what you want. So, I wouldn’t expect nearly as many sales through the iPad as Amazon, since no one can “stumble upon” me … they need to be looking specifically.

Anyway, those are my early thoughts. I’m gonna take it down to my family’s place for Easter dinner tonight and see how it works on-the-go. I’ll use it for a while longer and try reading a whole book on it and give you my further thoughts in a week or so.

What do you think? Is the iPad a “Kindle-killer”? An overpriced, but fun, diversion? A laptop replacement? The future of all things? Leave a comment below and let me know your thoughts….