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The problem isn't so much the format (ePub is a great format, I love it). The problem for ePub and the book stores that back it, is that Amazon are offering, and continue to offer the least complicated reading experience around their own proprietary format. This year is the tipping point, and it'll tip in Europe with a price as low as £109 and with the Amazon brand behind that price, you'll get a lot of non-technical adopters who'll buy this come Christmas
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Your probably right, and using Calibre I can convert all my epubs into mobi format but for me (thinking christmas here) that £109 is probably better put towards an Ipad, and that's what its going to come down to Apple or Amazon, at least with an Ipad I get colour, plus proper internet access using Safari or Google, plus all the other apps I want, and with ibooks I can add in my epubs. I just find it strange that Apple chose epub and Amazon can ignore it.