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Will free iPhone Kindle app eat into Kindle 2 sales?

Now that Amazon.com is letting people read its electronic books on the iPhone, the inevitable question arises: will Amazon's link-up with the popular Apple device undermine sales of the newly minted Kindle 2? BusinessWeek takes up the topic in a story today that asks if Amazon's iPhone strategy is a "Kindle Cannibal."

The magazine talks to one analyst who believes that people who already own an iPhone and can get the free Kindle application will have less incentive to buy an actual Kindle -- particularly in today's economy when many are cutting costs. But Citigroup analyst Mark Mahaney, who's been bullish on Kindle sales, says the new iPhone app doesn't change his projections and calls the Kindle 2 a bonafide hit.

Read the whole article @ Tech Flash

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