People are going on about how the Kindle is at risk because of the iPad.  Personally  I have not seen how well the iPad works in daylight.. but I know the Kindle works like a champ.  That’d be the big risk I think.. but…

I think the iPad vs. Kindle is not the right question.  It is potentially impactful for both companies.  Now.. will Amazon suffer because of the iPad?  Maybe a little at first, but I don’t think significantly in the long run.  Here is why.

Hardware sales are not hugely profitable.  If Amazon were to lose ALL hardware sales for the Kindle, it would be visible.. but what if they do an update to the iPhone Kindle app and make it more iPad friendly?  What if it is competitive with the iPad eBook app?  Do they have exactly the same content?  No..  Will it breed competition?  Yes.  Isn’t this better for all of us long-term?

I think that Amazon will do just fine giving away a Kindle app and having sales through their Kindle store on the iPad.  It should be a fantastic opportunity for them.  If I was the product guy on the Kindle App, I’d be jumping for joy right now.  Yet another great platform for me to sell books through.