Amazon announced that "On Christmas Day, for the first time ever, customers purchased more Kindle books than physical books." Well duh! If you want a physical book for Christmas, you have to buy it before Christmas day. On the other hand, every one who received a Kindle as a gift used the wireless book download feature to get a book to read on Christmas day. In the very same announcement, Amazon said that "Kindle has become the most gifted item in Amazon's history". Amazon's statement is a nice piece of spin but not a lot more.
More interesting commentary on electronic book readers is found in the Kindle Chronicles blog. In the early days of emusic, musicians generally stood by their record companies. Book authors seem to be a much more independent lot according to the most recent post "What We Have Here Is a Failure To Communicate". The publishers have been trying to preserve their position by keeping the prices of ebooks high, while the authors want to be read and the books that sell most on the Kindle are the cheaper ones. Also authors do not see why the publishers should get such a large share of the revenue when there is no cost to their ebook inventory.