Matthew Ingram writing on GigaOm about the fascinating
rise of the Book as the Killer App on the iPhone (see above chart):
According to Mobclix, which does mobile advertising for apps, the number of books in the iTunes store now exceeds the number of games for the first time since the device was launched, making books the largest category in the store. The numbers from Mobclix, which keeps a regular tally on the most popular apps and downloads, show that there are more than 26,000 books in iTunes, compared with a little over 24,000 games.
And just yesterday we wrote that the market for small, stand alone apps on the iPhone (and by extension other smartphones) was probably
an early adopter fad. Prescient or what

As Matthew notes, this is disruptive to an already Disrupted 1.0 industry
This fits in with something Om wrote recently based on data from Flurry, which also showed a substantial increase in the number of books being downloaded to the iPhone. At the time, Flurry said that Apple was “positioned to take market share from the Amazon Kindle” for book reading, despite the small size of the display, and that “with Apple working on a larger tablet form factor [Aka iPad], running on the iPhone OS, we believe Jeff Bezos and team will face significant competition.”
The Battle for the Book is thus looking very interesting, albeit it seems to be taking an initial backward step as various publishers and hardware providers try and jockey for proprietary supply models. This of course will be a hit with the customer like it has been every other time its been tried (not!)
So - some predictions in this space over the next few years:
(i) Greedy and shortsighted players will try and make proprietary content-to-device deals and attempt to lock in high prices of eBooks despite much lower production costs
(ii) This will be accompanied by the wails from the Book Industry that billions are being lost to e-Piracy (oh wait, that's started) and demand the Government Must Do Something
(iii) One player (my money is on Apple as the have form) will break the logjam allowing you to get most of the content on one (ie their) device
(iv) Les Autres will wail about unfair competition, but they have only themselves to blame - after all, the playout of the music industry is plain for all to see
(v) Authors still won't see more money for their work, so will start all teh alternative channels as musicians have.
In other words, another
Santayana Moment