The ongoing battle between Adobe and Apple over the lack of support for Flash on the iPhone and iPad has been entertaining to say the least. Adobe has been candid about what they think of Apple’s policy, and in turn, Steve Jobs has been open about his thoughts on Flash. But in the end, Flash is still not supported on Apple’s iPhone and iPad. Today, Adobe is partnering with mobile ad network Greystripe to help bring Flash authored ads to the iPhone, iPad, Android and mobile web. Well, sort of.

Greystripe’s technology now transcodes Flash authored ads as HTML5 to mobile devices that do not support Flash Player (such as the iPhone and iPad); these ads will be supported in both applications and on the mobile web. There’s no work for the advertisers or publishers; Greystripe says the transition from Flash to HTML5 is seamless. Greystripe’s new technology for Apple’s Safari web browser will allow real-time transcoding of Flash authored creative work to HTML5.

Greystripe has been allowing advertisers to use Flash-like technologies in their iPhone and iPad advertisements for some time now. The network essentially takes ads created using Flash and transcodes them to run on the iPhone and now the iPad. The technology changes the nature of the Flash ads on the front end but the rich media ad behaves the same way. With this partnership, Gresytripe is working with Adobe directly to be able to allow advertisers and developers to be able to target devices that do not support Flash by transcoding ads to HTML5.

And Adobe, who has also recently embraced HTML5, is probably wise to help ad startups like Greystripe be able to offer the ability to switch from Flash to a supported rich media format. But it should be interesting to see how Greystripe and other independent mobile ad networks manage to compete with Google’s AdMob and Apple’s iAd networks.

Chinese pirates hawking a new crop of Apple Inc iPad knock-offs are hoping the real product’s global launch will provide much-needed publicity for their slow-selling wares.

They could find the sailing anything but smooth, however, as increasingly sophisticated Chinese consumers are seeking the real deal of a product known for its hard-to-copy performance as much as its easier-to-replicate looks.

This week at an outlet in one of Shanghai’s top computer marts, the owner surnamed Li was trying his best to sell a new iPad clone, called the iRobot, passing it off as the iPad’s identical twin.

“It is expensive and it just arrived from Shenzhen. We haven’t sold many of these yet, maybe only two a day,” said a congenial Li, surrounded by an array of Apple-branded products of unknown origin, including three types of iPhone.

“So far, not many people know about the iPad, but after the Apple launch a lot of people will want one. If they can’t afford it, they will buy the fake,” he said.

The iPad officially went global on Friday with launches in Australia, Britain, Canada, France, Germany, Italy, Japan, Spain, and Switzerland. It is set to come to Hong Kong in June, but no China date has been set yet.

An Apple spokeswoman in Beijing had no information on when the iPad would be available in China and no comment on the fake iPads.

Pirates hope to capitalize on their lower prices and earlier availability to woo Chinese customers, but have met limited success so far.

While Li’s iRobot costs $400 — less than the starting price of $500 for the real iPad — his iRobots and other iPad wannabes also come with a range of distinctively non-Apple traits such as cheap plastic casings, memory card slots and USB ports.

Such differences, along with lower performance in factors such as boot up time and ease of use, are turning off a growing number of potential Chinese customers to the bootleg products.

Fake or Real Ones?

Zhou Xi, 26, a marketing executive who already owns an iPhone, said he would buy an authentic iPad or none at all.

“Look, people who have tried the real thing don’t buy the fakes,” said Zhou, a self-professed Apple lover slickly clad in tight jeans and aviator shades, as he shopped for a case for his iPhone at one of the mall’s Apple shops.

Xiao Yi, a 23-year-old office worker, said she immediately thought of an iPad when looking for the top prize to give away at an upcoming company dinner.

“I don’t know much about Apple and the brand, but I know it is a new product so I thought it would be impressive to give away,” Yi said browsing through iPhone accessories at an Apple store at the upmarket electronics mall in Shanghai.

She said she had not decided yet on whether to settle for a fake iPad instead.

Another shop salesman at the mall said demand for real iPads was high, with at least 10 people enquiring about them.

“The piracy problem is not that significant because of the functionality of the real one,” said Mirae Asset analyst Dean Li. “Apple has strong brand power. No matter how expensive, Chinese consumers won’t care about the price problems,” he said.

But not all Chinese have bought into the Apple ethos, reflecting the uphill climb the company and other Western brands continue to face in their battle against Chinese pirates.

Xiao Ling, a 20-year-old sales girl at a shop that claimed to be an authorized Apple distributer, said all products sold from her store were authentic, but her own tastes are less discerning.

“I will definitely buy the fake one, the real one is too expensive, plus it is all the same, only with the fake your don’t have to pay for the apps,” she said.

Some Apple stores in Canada and Australia sold out of the 3G version of the iPad, and staff were telling customers they did not know when new stock would arrive. This is a fairly significant piece of advice, people want the freedom of the un-tethered iPad, and Wi-Fi didn’t cut it.

Apple’s flagship Australian store in Sydney had hundreds of the iPads with WiFi connectivity but none of the versions that are WiFi and 3G enabled. The same trend was found at the Eaton Centre store in Toronto Canada. The 3G versions were selling and with Wi-Fi only versions collecting dust.

With the WiFi iPad, users can connect to the internet via wireless networks but the dual WiFi and 3G enabled iPad – like a mobile phone – can also be used on cellular networks. That is the whole reason for the iPad, small light and always available computing. The device has been accepted for what it is, a truly mobile computer rather than a Wi-Fi surfing home device. This is surprising and also quite significant from a user acceptance standpoint.

The 3G versions cost about $200 more than the iPads with WiFi connectivity only.

There was bigger demand than anticipated for the 3G model and nobody knows when they will have more stock. Apple shipped out all the devices they could internationally but demand has outstripped availability. Apple has a huge hit on their hands. Even in the more price conscious International markets. Canada was expected to be cautious to accept the iPad, this has not been the case based on the sales evidence.

At the Toronto Eaton Centre Store in Canada, it was the biggest couple of days they had as a company and they have put on more staff and they probably could have used twice as many.

In Australia, the Melbourne shop probably did one-third of its monthly turnover in one day. According to the manager.

There was also a trend for customers to return the next day to stock up on accessories, such as carry cases, keyboards and camera connection kits. Accessories are what is helping drive sales too. Very much like the iPod…

Canadian newspaper “The Globe and Mail” had a very disappointing iPad hacked together App. Which was half iPad and half website slapped together rapidly. I hope the next version is a significant improvement. They called it “Globe 2 Go”. There is room for some competition to bring some great apps to market for news and Information in Canada.

The Australian’s iPad application, presently the only news app offered by an Australian newspaper, remained popular in the iTunes store. For $4.99 a month, iPad subscribers can read The Australian, including real-time news updates. New sections as well as picture galleries and video reports will be rolled out over the coming months.

The iPad has spawned an industry of parasite products, with users rushing to purchase custom-made cases and clothing. It’s a revolution and it’s here.

As Apple kicks off international release of the iPad (which includes Canada, finally), rivals are working to develop their own products to claim a slice of a growing consumer market.

“[iPads are] primarily used as for Web browsing, multimedia and as a game device – that’s 99 per cent of the use today, but will be less than 50 per cent in three years,” said Deloitte Canada technology analyst Duncan Stewart. “They’re going to become business tools … Instead of having magazines in the lobby, a business will have a couple of tablets; instead of store salespeople with paper catalogues, they’ll carry tablets.

“The consensus has moved from ‘these things will sell in the single-digit millions’ to ‘these things will sell in the double-digit millions, and could they sell in the triple-digit millions?’”

Tablets aren’t new. Apple introduced a handheld computer, the Newton, in the 1990s, with little success. This time, however, the iPad is riding a massive wave of consumer enthusiasm set off by the success of the iPod and the iPhone.

Much as it did with those products, Apple has captured consumers’ imaginations with the iPad and built an early lead in the market.

Competition is coming, although the exact lineup of challengers has yet to be determined. Since Apple launched the iPad in early April, both Microsoft and HP have put their tablet plans on hold. Microsoft may have reconsidered the idea of its original concept – a dual-screen reader, that would open like a book. HP probably wanted to incorporate technology acquired as part of its recent purchase of Palm, the smart phone maker. Both are expected to try again.

Dell is set to release its own tablet – running on Google’s Android operating system – in Britain next month. Google is also widely expected to release a tablet of its own, following its acquisition earlier this year of a Toronto startup that specializes in user interfaces for touch-screen devices. Many smaller companies also have tablets in the works.

“The experience of the iPhone woke up manufacturers beyond the mobile industry,” said Tony Olvet, vice-president of communications research at IDC Canada. “Everyone from Dell to HP are saying, ‘Okay, we don’t want to miss the boat on this market.’”

Google’s Android operating system may have the best chance to overtake Apple in terms of market share, given the sheer number of tablet devices that are expected to employ it. However, while multiple products running Android may eventually constitute a bigger portion of the market than the iPad, Apple’s gadget may still be the single best-selling product, Mr. Stewart notes.

This week’s international launch will provide analysts with their first look at the iPad’s reception outside the U.S., where a million iPads were sold in its first month on the market. The U.S. numbers were impressive because people are still debating where the iPad will be used most often – in the living room, the coffee shop or the morning commute.

“Consumers don’t have a preconceived notion that they need this device; they have to be taught to want this device, and Apple is the best positioned company to teach them to want a tablet,” said Sarah Rotman Epps, a consumer product strategy analyst at Forrester Research Inc. “Part of their innovation is that they completely ignore what consumers want and deliver what Apple thinks they should want.”

If the tablet eventually finds its niche as a sort of superpowered universal remote control and media hub in the living room, Apple’s competitors may be able to take advantage of the company’s relatively weak position in some areas of home entertainment, Ms. Rotman Epps said. Microsoft and Sony already have a significant presence in the living room in the form of gaming systems, TVs and other devices – which they can readily sync with their own tablet products – while Apple does not.

“If the tablet could be a device that integrates more closely with the television and accessories like gaming consoles, I think that there’s opportunity for another company to one-up Apple, if they do it right,” Ms. Rotman Epps said.

Apple Inc. rallied 1.8 per cent to $246.76 (US) [May 27 2010] as investors embrace market share gains for the iPhone and demand for the iPad computer. Analyst Kathryn Huberty raised her share forecast to $310 from $275 and put Apple on the list of “best ideas” according to a note to clients. She kept the shares as “overweight”, a rathing she’s held since September 2010.

Add one more insult for the Mac dude to hurl at the hapless PC guy.

Apple is now the world’s largest technology company, after overtaking Microsoft in market capitalization Wednesday.

The financial scorecard – a $222.1-billion (U.S.) market value for Apple versus $219.2-billion for Microsoft – marks a symbolic changing of the guard. Only one company is worth more: Exxon.

And it parallels a remarkable reversal of fortunes for the two U.S. technology titans – one who wooed consumers, the other who chased Big Business.

The consumer won. Apple, which once relied on one-hit wonder computers, has transformed itself into a consumer electronics giant by cleverly linking its trendy devices – including the iPod, iPhone and its latest iPad – to lucrative sales of songs, books, photos and movies.

Microsoft, meanwhile, has become a stagnating giant, content to be a technology follower, too reliant on pushing its Windows operating system on business customers.

“This is a pretty long term trend,” said Michael Cusumano, business professor at MIT’s Sloan School of Management.

“Microsoft sales are stagnant. Apple has all these interesting products, the future is bright, and it’s all tied to digital content.”

Apple knew it had lost the battle of the desktop to Microsoft and its Windows operating system, but it realized that business was shifting to portable devices targeted at consumers, explained Prof. Cusumano.

So Apple launched a strategy in 2003 to marry its popular iPod music player to digital content through iTunes and to an array of applications.

“Apple had kept its products pretty closed to the outside world,” said Prof. Cusumano, whose soon-to-be published book, Staying Power: Six Enduring Principles for Managing Strategy and Innovation in an Uncertain World, features a chapter on how Apple beat out Microsoft.

“They realized they missed an opportunity to control the desktop, largely because they didn’t open up the technology to other developers, while Microsoft did.”

Apple learned from that mistake. The company blasted into the wireless market with the application-rich iPhone – and now the tablet-form iPad – which incorporates books, newspapers and magazines.

But new-found market clout in digital content has also brought the scrutiny of antitrust regulators for Apple – just as Microsoft experienced with its Windows operating system and Explorer web browser in the 1990s.

The U.S. Federal Trade Commission and the Justice Department are reportedly exploring a possible antitrust probe of Apple over policies that restrict developers from writing applications for its iPhone operating system.

Apple controls 70 per cent of the market for online digital content and has roughly the same share of the Mp3 market.

For most of its existence, Apple’s market capitalization was roughly the same as its revenue, reflecting investors’ belief that the company was far too reliant on products that were innovative, but appealed mainly to a relatively small population of computer enthusiasts. In 2004, for example, Apple recorded $8.3-billion in revenue and its shares were worth roughly the same. Microsoft, on the other hand, had revenue of $37-billion, but its market value was worth seven times that, with investors betting its fortunes would soar.

In the six years since, the trend has reversed. Microsoft’s stock has languished, and many of its new products have failed to make a splash with consumers, including the Zune Mp3 player and the Bing search engine.

Apples revenues and profits are growing quickly. Microsoft is slowly shrinking. Critics say Microsoft remains too afraid to launch daring new products, instead sticking closely to established sales channels.

Apple slipped passed Microsoft Wednesday, even as Apple shares slipped $1.11 to close at $244.11. But Microsoft fell even more, in percentage terms, losing $1.06 to $25.01.

It’s a remarkable comeback for Apple and its founder Steven Jobs, who presided over the launch of the Macintosh computer in 1984.

In years since, the computer company almost crashed as Microsoft’s operating systems dominated the industry. For a while, Mr. Jobs was exiled from his own company. And rivals suggested Apple should be wound down and the cash handed back to shareholders.

But Mr. Jobs came back in 1997. He reinvented Apple, and himself, as a purveyor of must-have computers and tech gadgets, with enticing designs that made technology fashionable and easy to use.

Part function, part art and always cool, Apple’s designs stand out for their raw simplicity. The iPod is, of course, the classic example. In an era when makers of other electronic devices wanted their products’ complexity to stand out, Mr. Jobs and his lead designer, Briton Jonathan Ive, created a tiny device in 2002 that could store and play a lifetime of music. It looked more like a white soap dish than a sophisticated piece of electronics. But consumers loved the functionality and convenience of the device, launching Apple’s transformation into a digital media giant.

]]> http://smartairmedia.mobi/content/2010/05/27/apple-microsoft-leader/feed/ 0 http://smartairmedia.mobi/content/2010/05/27/nokia-and-yahoo-will-partner-on-new-location-mobile-services/ http://smartairmedia.mobi/content/2010/05/27/nokia-and-yahoo-will-partner-on-new-location-mobile-services/#comments Thu, 27 May 2010 16:19:36 +0000 admin http://smartairmedia.mobi/content/?p=515 Nokia will run mapping and navigation services for Yahoo Inc. in an acknowledgment that the slumping Internet company hasn’t kept up with rival Google Inc. in the increasingly important area of location services.

Yahoo will, in turn, provide e-mail and instant messaging services on Nokia phones, as part of the worldwide partnership announced Monday.

Yahoo has been working to focus on its core businesses — creating and licensing content, selling online ads and providing messaging services — while turning to partners to run some of its other offerings. It’s a great way to do business and is the new emerging trend in closer corporate service trading. Companies are staying focused on their core competencies and partnering where needed.

Yahoo’s CEO Carol Bartz believes it just allows Yahoo to deliver better experiences than everybody trying to do the same thing.

Partnerships are increasingly becoming a part of Yahoo’s approach to business. Last year, the company entered a 10-year Internet search partnership with Microsoft in an effort to whittle away Google’s leadership. On Monday, Yahoo said it will drop its Yahoo Personals brand for its dating service and partner with Match.com, a standalone dating website owned by IAC/InterActiveCorp.

The maps deal with Nokia, the world’s No. 1 maker of mobile phones, covers both phones and computers.

Eric Schmidt at the Google TV launch The average American watches five hours of TV a day, Google said search giant Google has launched a TV service that unites live television with the web.

The “smart TV” service allows people to search both live channels as well as content from websites such as YouTube.

Special TV sets – or normal TVs connected to a Google box – will also allow people to access the web and download applications.

The first TV sets will be produced by Sony and should be available in the Autumn.

Currently 4 billion TV users worldwide and that around $70 billion (USD) was spent annually on adverts in the US alone.

Google generates the lion’s share of its revenue from selling web ads and many analysts speculate that its move into television is an extension of the business.

Television was a “very natural space” for Google. It lines up with Google’s ambition to organize the World’s information, so why not move into Television next.

There had been several attempts to connect televisions to the Unternet in the past but none had been very successful.

“Things have changed recently with an increasing number of higher quality web TV services available on TV sets.”

Google showed off the service at a launch event in San Francisco (late May 2010) but the demo was plagued by technical glitches. Well after all it was only a demo. So many people in the 5,000-strong audience were using the conference wi-fi that the demo ran into repeated problems.

Google finally had to ask people to disconnect their phones from the wireless network to free-up enough bandwidth.

The service is built around an onscreen search box, similar to Google’s web offering, that allows people to search for content on live channels or the web.

Google demonstrated searching for the television programme “Home” which boring up results from live channels as well as web services such as Hulu and Amazon.

The service streams shows from the web using Google’s Chrome browser.

The browser also allows people to search non-video content from the web.

The technology makes your TV into a games console, a photo viewer or a music player. Not new concept but essential for any product in this category.

The first television sets will be built by Sony, who will also build the service into a Blu-Ray DVD player. Set top boxes and peripherals will be built by Logitech, although the service can also be controlled from a mobile phone running Google’s Android operating system.

The TVs and boxes will also use Android and will rely on an Intel microprocessor.

Google’s mission is to have the same impact on TV that the smartphone had on the mobile experience.

The firm has also used the conference to launch various initiatives, including an update to its Android operating system and an open source video project called WebM.

The WebM project will make the VP8 video codec, which it acquired when it bought On2 for $133m (USD), open source.

Codecs are used to encode and decode web video. Various formats are currently competing to become the default standard for web video in the future.

Several web browser makers, including Mozilla, which makes Firefox, and Opera, have agreed to support Google’s new format, which will be offered for free.

Another codec called H.264 has the support of Apple and Microsoft. Whilst it will be free for the next five years, it is encumbered by patents and its owners MPEG LA plan to charge for its use.

Steve Jobs previews iPhone OS 4.0. This report covers the main features of iPhone OS 4.0. Advertising support and multithreading are two of the main advanced features.

The new iPhone OS extends the set of APIs to over 1500. The iPhone SDK 4 provides developers with a broad range of technologies to enhance the functionality of their iPhone and iPod touch applications. Developers can use these new APIs to make their apps more powerful, more feature rich, and more amazing than before. They can even use new GameKit APIs to develop for Game Center, the social gaming network Apple will launch later this year.

iAd

iAd is a Apple’s mobile advertising platform. The new OS allows apps to feature rich media ads that combine the emotion of TV with the interactivity of the web. For developers, it means a new, easy-to-implement source of revenue. For advertisers, it creates a new media outlet that offers consumers highly targeted information.

Enterprise Deployment

Phone OS 4 offers more useful features for businesses. With enhancements to security, scalability, and compatibility, IT managers have even more peace of mind deploying iPhones throughout their enterprises.

Upgrades

Apple has introduced its latest fourth generation iPhone OS. The iPhone 4.0 OS was much awaited and Apple introduced more than 100 features including one high on everyone’s wish list, multithreading (running more than one application at the same time).

Availability

The new OS will be available only in June 2010. Here’s a list of the major features.

Multitasking

Apple have finally realized the necessity for multitasking on the iPhone. All you have to now do is press the Home button twice and a list of apps running in the background pops up. Then, you can then easily switch between them.

Folders

To create folder, press down on an icon until it starts to vibrate, then drag that icon over another icon that you want to group with it. The iPhone 4.0 OS will automatically make a folder containing the two apps; it will even name the folder based on the category of the app. You can also have custom wallpapers on the home screen.

iBooks

Thew new OS has a “delightful” ebook reader and an iBookstore that allows you to buy a book once and read it across multiple devices. Apple is even throwing in a free iBook of Winnie the Pooh.

Enhanced Mail

In addition to a unified inbox that allows you to merge all of your email accounts into a single inbox, enhanced email also supports the ability to organize email messages by thread and the ability to open email attachments in other apps.

Enterprise Features

Enterprise features include better data protection, mobile device management, wireless app distribution, support for multiple exchange accounts, exchange server 2010, new VPN options and the works.

Game Centre

Apple added an XBOX Live-like experience for the iPhone. You will be able to invite friends to play games, find random players to compete against with Matchmaking, compare performances, and earn street cred with achievements.

iAd Advertising

There is also an iAd i.e. a mobile advertising system that is built into the phone. The iAd system will permit makers of advertisement agencies to create adds straightforwardly to their applications, compete with the emotional effect of television ads. iAd will show full-screen video and entertaining ads without leaving the app. Users can return to their app, where they left off, at any time.

Additional features

Other smaller but significant features include: Support for Bluetooth keyboards, tap to focus for video recording, 5x digital zoom in camera, file and delete mail search results, spell check, sync IMAP notes, search SMS/MMS messages, web search suggestions, birthday calendar and a lot more.

Only the iPhone 3GS and iPod Touch (3rd Gen) devices will get all the new features. The iPhone 3G will *not* get multitasking. blahh.

What we didn’t get from iPhone OS 4

• Mass storage mode: We would’ve liked to see an easier way to just drag and drop files from our computer to the iPhone without having to go through a third-party app.
• Audio profiles: It would have been nice if the iPhone had different audio profiles for different environments that you could easily switch between.
• Flash support in Safari: Yeah, this was a pie-in-the-sky wish, but a lot of us out there wanted it.
• FM radio: Another one that was highly unlikely, but again, we know there are some who want it.
• Wi-Fi syncing: We would’ve really liked it if we could sync or back up our information on the iPhone over Wi-Fi instead of having to plug in our USB cable.
• Built-in photo editing: You can get third-party photo editors on the iPhone but it would be nice to have a built-in one as well.
• Printer support: This is a little more relevant to the iPad, but we also wished iPhone OS 4 would provide some printer driver support, which would be very helpful for printing out documents and notes.
• Multiple notification bar: On Android, there is a handy pull-down area where you can see all of your recent notifications, like for your new messages or new voicemails. It would be nice to see that on the iPhone as well.

The Android operating system (OS) continued to make major progress in the U.S. mobile phone market in the first quarter (Q1) of 2010, moving past Apple for to take the number-two position among smartphone operating systems (source: NPD Group, a leading market research company).

The Android operating system moved into second position at 28 percent behind RIM’s OS (36 percent) and ahead of Apple’s OS (21 percent).

“As in the past, carrier distribution and promotion have played a crucial role in determining smartphone market share, To compete with the iPhone, Verizon Wireless has expanded its buy-one-get-one offer beyond RIM devices to now include all of their smartphones.

Strong sales of the Droid, Droid Eris, and Blackberry Curve through carrier promotions helped keep Verizon Wireless’s smartphone sales in line with AT&T. Smartphone sales at AT&T comprised nearly a third of the entire smartphone market (32 percent), followed by Verizon Wireless (30 percent), T-Mobile (17 percent) and Sprint (15 percent).

Kobo is a global eReading service, where you can choose from a wide selection of eBooks including bestsellers and popular titles, newspapers and magazines. Stay connected to what you’re reading and your library; from your smartphone, eReader and computer. Kobo support Android, computers, iPhone, Blackberry, Palm Pre, and iPad (coming soon).

Kobo, the e-book spinoff owned mostly by Indigo Books & Music, has unveiled a $149 (CAD) e-ink reader that complete directly with rival Amazon and its Kindle and Apple and the iBook Store.

The Kobo eReader features the same electronic ink screen found on the Kindle and will be available through Indigo outlets in May, and in Borders stores in the United States in the summer. The eReader is priced lower than Amazon’s basic device, which sells for $259 (US).

Kobo’s device will come pre-loaded with 100 classic books that are in the public domain, but will not have wireless connectivity like the Kindle. Users will have to purchase their books online separately and load them onto the eReader via the USB or Bluetooth connection.

The company said it has more than two million books in its database at launch time.

The company was rebranded as Kobo in December from Indigo’s Shortcovers e-book division, and is aiming for a global market.

Kobo is 58 per cent owned by Indigo, with minority shareholders including Borders, Australia’s Red Group and Hong Kong-based Cheung Kong Holdings — which is also invested in Skype and Facebook, among other technology companies.

The e-reader market is becoming increasingly saturated. Sony already sells a rival device to the Kindle in Canada, and a number of electronics makers such as Samsung have versions in the works. Apple’s iPad is also expected to be a contender for the burgeoning e-book market.

E-book sales in the United States alone were $55.9 million (U.S.) in the fourth quarter of 2009, up from $16.8 million a year earlier, according to the Association of American Publishers. Worldwide sales are expected to climb to $9 billion annually by 2013, according to In-Stat.

Kobo is also selling e-books in the open ePub format, which many e-reader makers — except for Amazon — are adopting. Serbinis, who is critical of Amazon for snubbing ePub so far, said the format has an advantage because consumers will want to be able to read their books on whatever device they want. This is a huge advantage for Kobo and the iBook Store from Apple.

Amazon, however, is similarly critical of companies that are using the ePub format but then putting digital rights management copy protection on e-books, which Kobo is doing. Amazon, like Kobo, is working at making e-books available on all devices. So it may become a mute point over time.

The early side-effect of this new market is copy protection (DRM).

“EPub isn’t open if you wrap DRM around it. Our approach is to make sure you can read your Kindle books on any device,” said Amazon spokesperson Kinley Campbell. “We already support iPhone, iPod touch and the PC, and will have many more in the future, including Mac.” So there is the alternative argument from Amazon.

Serbinis said DRM is an early side-effect of the market that is eventually going to go away, just as it has — for the most part — with downloadable music.

Sharing and potential piracy of e-books won’t become an issue if publishers keep prices low, as they generally are now. If you can buy a book for $10 rather than $25, sharing becomes less of an issue.

Shanley also said there will be room in the market for dedicated e-book devices such as the Kindle and Kobo eReader, as well as for more expensive multipurpose gadgets such as the iPad.

Interesting times indeed for publishing.

For more information about Kobo click here.