Apple's iPad is launched, and among its many functions, one that analysts are looking at right now is its e-reading capability. In fact, some analysts and critics are wondering if Amazon's Kindle will be under threat once Cupertino's new tablet device launches. It's true that Amazon has a few problems to contend with that may be related to pressure from the iPad's coming iBooks application. Amazon just caved to the demands of major book publishers regarding Amazon e-book pricing, and some analysts believe the online retailer needs to cut the price of its Kindle e-ink devices to compete with the iPad.

A big deal is being made about how Apple has chosen to go with the "open" ePub format versus Kindle's proprietary format. But the fact is this doesn't really matter at all. Proponents of ePub usually like it because of the principle of data portability. That is, if you buy an ePub book you should be able to use it on any device you choose, instead of being locked down to a proprietary format like the Kindle.
The problem is, you can lock down ePub format just as easily as the Kindle format with digital rights management, and that's exactly what Apple has done. So books purchased from either the Kindle Store or the iBookstore are going to be locked down.
Source : http://www.pcworld.com/article/193242/apple_ipads_ibooks_vs_amazons_kindle.html
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