Analysts at JP Morgan say iPad won’t be killing Kindle, or Amazon’s eBook business, anytime soon, reports Gigaom. The analysts note that Amazon has managed to take a strong share of the digital music business, despite Apple’s considerable lead in that arena, and Amazon’s lead in eBooks puts it in a good position to defend its territory against a hip, new gadget.
Here’s more from Gigaom: “Despite (a) Apple’s 4-year head start in MP3 sales and (b) Apple’s dominance in devices, we estimate Amazon had ~10% of the digital music market by the end of ’09. We estimate that, even if Amazon’s eBooks market share dips to 30%, it could still drive ~$900M in incremental revenue as eBook penetration grows. Note that Amazon (a) has enjoyed a head start with the Kindle store, (b) manufactures the dominant dedicated device and (c) has aggressively expanded the Kindle platform to PCs and smartphones.”
We’d tend to agree. As we’ve said before, even if eBook readers fall in love with iPad, they are still likely to use the Kindle app to do lots of their reading. Right? What do you think?