I'm sure Amazon's announcement was timed to affect iPad sales. I doubt it will cause so much as a ripple. For me, however it means more. I have been in a "backing off" posture on Apple gear since my iPod broke and I was amazed at the poor service I got at the Apple store when I sought a repair. I got an iPod Touch specifically for Kindle software. I have been without it for several days while I wait for my iPod Touch to be returned in the mail. Amazon has provided me a way to read my ebooks again without resorting to Windows. Thanks for that. But I must admit that for me there is some attraction in the Kindle. Free connectivity for an ebook reader is worth something to me, even if the built in browser is WAP based. Remember it's free. Not $29 a month. Not $15 a month. Free. The real cost of these devices is in getting the data so if I compare a wifi only iPad to a 3G Kindle, the Kindle wins even if I have to buy a book every now and then to keep the service active. Of course if I want color, I've got a lot longer to wait as even the most optimistic rumors say color e-ink isn't going to arrive until late this year at the earliest.
I also had ereader on my iTouch. It's a LOT better than Kindle software. I went shopping for a copy of Lord of the Rings which only recently became available as an ebook. Kindle had it for about 12 bucks while ereader wanted more than double that amount. This is another area where iPad might lose its luster for me. If iBook titles cost a lot more than Kindle books, I'll keep using Kindle software on my iTouch, Mac and iPad (if I ever get one), even if Kindle software is more limited. When it comes to deciding between a Kindle and an iPad, the choice is less clear. For $259 I get a black and white device with no real credible browsing ability but virtually unlimited ebooks (400,000 amazon titles plus manybooks.net). For over $500 I get a wifi only iPad, can continue to read my Kindle titles but I get a tiny fraction of the battery life. I guess I've got some thinking to do.
For the majority of iPad's target audience, Kindle is only one of many apps. Because Kindle was the killer app that brought me to iPod Touch (and possibly iPad) in the first place, and in light of Apple's (apparent) reluctance to service my iPod Touch which has never been anywhere but my hands and my shirt pocket since I bought it, Amazon's announcement got my attention pretty quickly today.