Nevermind iPad, Kindle’s Flame To Still Burn Strong

Only if you were flying transatlantic the whole day, could you have missed the brilliant lights of reality distortion field hovering over the privileged earth yesterday. Oh wait, I was. Someone who tried to avoid it while being on terra firma — an admirable task — was Douglas Anmuth, analyst at Barclays Capital. In a research note this morning on Amazon (NSDQ: AMZN), in light of Apple (NSDQ: AAPL) iPad launch, he puts it thusly: “The Kindle is still significantly cheaper & will continue to appeal to somewhat of a different market given advantages like E-Ink screen, smaller form factor, better battery life, & lower weight.”

His main points:

— Total cost of owning an iPad (assuming a $30 monthly data plan and 3 yr product life) is roughly 6x-7x the cost of Kindle 2 (priced at$269 and likely going lower). Also, with an E-Ink screen, smaller form factor, lower weight, and better battery life, the Kindle may appeal more to serious book readers

— While AMZN still dominates the e-book mkt & has an edge in selection, AAPL could emerge as AMZN’s first major e-book competitor as it sells more iPads and adds new publishers to its store.

— AAPL’s support of e-pub could further increase the pressure on AMZN to abandon its proprietary format putting at risk lucrative lock-in revenue.