Thoughts on 'Why the iPad Couldn’t Kill the Kindle'

Today, Thomas Nelson CEO Michael Hyatt wrote in his blog "Why the iPad Couldn't Kill the Kindle."

He wrote: "When Apple launched the iPad last spring, most everyone assumed it would kill the Kindle. After all, the iPad had a multi-touch screen, a crisp, color display, the ability to view books, photos, and movies, and run thousands of applications."

He also writes: "it is clear that we have two distinct product classes here with less overlap than originally thought. Apparently, the market is big enough for both."

On this point, I don't disagree, however, I don't believe the battle is over. Hyatt cites the following as one of the reasons the Kindle "not only survived, but thrived":

"Amazon kept the price of the Kindle in the impulse range. The cheapest iPad (16GB, wireless only) is $499. The cheapest Kindle is $139 (wireless only)—less than one-third the cost of the iPad. Obviously, that doesn’t make it an impulse item for everyone, but it is far easier for customers to justify $139.00 than $499."

But this doesn't take into account that Amazon's first-generation Kindle sold for $399. And we're still on the first iteration of the iPad. Rumors of an April release of the unofficially named "iPad 2" are not predicting a price drop for the anticipated new iPad version, however some are wondering whether Apple will continue to sell the first iPad version at a discounted price.

Regardless, the Apple Insider cited on New Year's Eve a report that predicts iPad sales will jump "from 14 million units in 2010 to 36 million next year."

Many predictions for Kindle sales in 2011 hover around 8 million or 9 million. In Hyatt's blog, he writes, "Nevertheless, some experts estimate that they sold as many as eight million Kindles in 2010," suggesting sales could essentially remain flat for the Kindle this year.