Report: Apple building a Kindle competitor
thestandard.com
thestandard.com
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Apple will introduce the device at a higher price point than netbooks and the Kindle. This will enable them to partner with Amazon, and it will also fit Apple's usual strategy of high margins for premium design, integration, and usability.
Granted Amazon has a stellar relationship with publishers, and Apple would want to take advantage of this. But we're talking about a company that started its own retail wing when everyone was fleeing from retail like it was the plague, just because it wanted to control the full customer experience. They would not give an inch if they had skin in the ebook game.
Selling a high-end, upscale device that plugs into Amazon's online sales sounds like a perfect fit for Apple.
An Apple touchpad device would also be a planner, a media viewer, a household remote control, a communication device, a gaming device, and a platform for running App Store apps. (1) eBooks would only be a small fraction of what it would be about, as opposed to music on iPods, which are more-or-less about music.
(1) - The iPhone is all these things as well, but form-factor is significant. There are times when you want more screen real-estate and can do with less portability.