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I think Kindle dominates in the US, but not everywhere
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Not quite correct: Kindle dominates in the US, but
nowhere else. Because it isn't available anywhere else at the moment. And would it domniate other markets as well? I doubt this.
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I'm not sure how much of a threat the iPhone is to the dedicated E-reader market. A phone works well for casual reading, but not for "curl up with a long book" reading.
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Sales numbers for the iPhone & iPod Touch worldwide are much higher than for the Kindle in the US. True, the iPhone isn't a dedicated reading device, still a lot of people use it for reading.
And the "casual reading" is in my opinoin the real asset. Avid readers always will tend to buy a dedicated device (or stay with books). But for the number of people who read rather casually the iPhone is a more than fitting device.
Maybe we'll see the return of the short story (or at least shorter novels) on the iPhone for reading while commuting or waiting for an appointment, rather than these wooden bricks which paperbacks have become the last twenty years.
iPhone for causal readers, reading device for avid readers. Sounds like a nice combination to me. There's a place for Amazon in that, too.
A place, not
the place.