In October, one out of every five new apps launching in the iPhone has been a book. Publishers of all kinds, from small ones like Your Mobile Apps to mega-publishers like Softbank, are porting existing IP into the App Store at record rates. Flurry first evaluated the iPhone as an eBook reader in its July Pulse ("You Trying to Swindle my Kindle?") where it looked at consumer demand for eBooks. In that report, we observed that during the month of August 1% of the entire U.S. population was already reading a book on the iPhone. Now, with books shipping in droves, we are seeing the supply-side explode.
The sharp rise in eBook activity on the iPhone indicates that Apple is positioned take market share from the Amazon Kindle as it did from the Nintendo DS. Despite the smaller form factor of the display, we predict that the iPhone will be a significant player in the book category of the Media & Entertainment space. Further, with Apple working on a larger tablet form factor, running on the iPhone OS, we believe Jeff Bezos and team will face significant competition.