iPad cannot be used for reading any ebooks. Look at Pixel Qi vs iPad videos on Youtube. The only way tablets will be used for reading anything more than twitter messages will be if they get to use fully reflective screen technologies like Pixel Qi LCD technology.
Amazon is making huge profits on content for the Kindle.
Other e-ink makers will make profits too by getting a share in sales through the Google Editions e-book store that is coming out next month. Basically, any manufacturer can sell a Android based e-ink e-reader for $99 and make 4% or whatever revenue share from Google Editions for all the e-books that will be bought on the device.
And in fact, people that own e-ink e-readers buy 10 times more books than people who don't have such a device.
Again, there is absolutely no way that the ipad can replace e-ink e-readers for reading, not as long as they don't use Pixel Qi screens.
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