Apple is definitely competing with Amazon and not just in ebooks. As far as ebooks are concerned, a lot of folks here believe that Apple has failed with iBooks . However, its early days yet . Mike Shatzkin thinks iBooks may be third behind BN in terms of its share of the book market (10 % as opposed to Amazon (55%) and BN (25%).That's after 2 years.
In terms of innovation, there is a lot happening on iOs platform (iBooks Author,ITunes U, and enhanced ebook apps such as the
Wasteland and the
Fantastic Fying Books of Mr. Morris Lessmore.
I can see a future ebook market where Apple dominates the "premium" , innovative end of the ebook market and Amazon dominates the low priced "mass market" end. I think that's part of Apple's strategy.