One of the biggest challenges to not living in the United States is the additional wait time for all Apple technology releases. For some reason, we’re always a few months behind. So I’ve only had my iPad (64GM, 3G enabled) since June. During that time, I’ve realized a few key things about it.

1) Reading books on a backlit screen is challenging. Indoors, it’s fine. Outdoors, there’s glare that only gets worse in bright sunlight. The saving grace is reading at night in the dark — then the backlit screen is wonderful.

2) The iPad is very heavy compared to the other e-readers I’ve tried (Sony, Kobo, Nook, & Kindle). And heavy is the last thing you want in a portable reading device, as it reminds you too much of a p-book.

3) It’s totally fun to play free downloadable games on it. (Many hours of mindless distraction later, I still keep gravitating back to solitare.)

4) It holds a ton of music and video, and syncs my calendar, contacts, and multiple email accounts. Plus it can take notes and access web pages, not to mention the 200,000+ apps that do things I didn’t even know were missing from my life. The recent firmware upgrade has added some nice functionality.

The iPad was never meant to be an e-book reader only. The iBookstore is a good add-on for Apple, but it will never make them much money. The publishing industry doesn’t need to worry as much as the music industry did about iTunes (that was a game changer).

What the iPad really does is make laptops and mini-computers obsolete. It’s a completely new way to interact with information; iPod Touches were just the starting point. With the next generation of iPads coming next year, Apple is poised to dominate again. The other options in the market (Galaxy Tab, etc.) just reinforce that it isn’t about reading – it’s about portable connectivity and entertainment. Makes me feel all Star Trekker just thinking about it.

E-readers have faced and overcome a number of issues in the past decade to get as far as they have:

• Technical limitations with the devices (creating the e-ink screens, getting size and weight down, engineering battery life)
• E-book format standardization (co-operation among publishers, much less tech companies, is rare)
• The perceived danger of lowering the price of books and thus their profitability
• A sense of tradition about “paper” books from publishers and readers
• A fear of piracy and bootlegging of books

The one issue that’s becoming more prominent by the day is the battle for market share among the various e-reader producers. Recent price wars have lowered e-reader technology prices by 75%. A first-generation Kindle would have set you back $450. Today, you can get a better version with more features for just $139. In order to stay competitive and maintain its price point of $149, the Kobo had to add wireless capability.

There are currently dozens of different e-readers on the market. This will change dramatically in the next year as price wars continue and the e-readers with fewer features or higher prices get muscled out. Already there have been casualties, such as the plasticLogic Que reader, which folded before it even launched. Expect to see many more e-reader brands die off.

Although the market for e-readers is growing at an astonishing rate (192% year-to-date and a record 172.4% in August over July of this year), it’s still a relatively small market worldwide with many competitors battling to add features while keeping prices low enough for the purchasing cycle to continue. There will be winners and there will be losers.

The overall war will be won by the companies that provide the best access to content AND the most flexibility to use that content. The Amazon Kindle has an early market lead and the clout to keep going. It just added a lending feature to compete with the Nook. More important, it recently launched — just in time for the Christmas buying season — a feature that allows people to give e-books as gifts, an e-reader functionality matched only by Kobo. If the Kobo can continue to grow, it has a good chance of being the number 2 e-reader, surpassing the Nook (see why here).

This year’s holiday season will be an important test. Come January, we should have a pretty good idea of how the e-reader market will shake out.

In the not-so-distant future, say 10 years from now, books will be sold in three main formats: e-books, cheap print-on-demand paper books, and specialty hard cover collector editions.

1) E-Books
Digital readers are becoming cheaper every day. The Kobo is priced affordably at $149 and the magic sub-$100 price point is coming very soon. At the same time, digital readers are also getting better: better screens, better graphics, color eInk options, wireless and Bluetooth capabilities, and more memory for more books. Although the iPad may not crush the Kindle, it introduces a different kind of experience complete with audio, video, and virtually anything else you want to add. The environmental/green angle of digital books is also a great selling point. Kobo (formerly Shortcovers) was created in 2008 for a digital book market that was expected to account for 5-10% of all book sales within five years. Now the estimate is as high as 95% in 10 years. Add it up and digital is the future of books.

2) Print-On-Demand Books
Some people will still want their “beach-proof” copy of a book or something they can mark up in the margins. Technology like the Espresso Book Machine has made it cheap and easy to print single copies of a book, available in minutes from your local bookstore (yes, they will still exist), Costco, or even the public library. The difference is that these books will be produced digitally, then output to a paper format for a small group of buyers. They still make vinyl records after all, so we won’t be done with paper for a long time.

3) Specialty Hard Cover Collector Editions
Back in the old days of publishing, there were two types of books published: inexpensive paperbacks meant for mass consumption, and leather-bound hard cover books that only institutions or the wealthy could afford. The latter were as much to be collected and displayed as to be read. Well, what goes around, comes around. J.K. Rowling may have single-handedly created the rebirth of the collector concept when she packaged Tales of Beedle the Bard for Christmas 2007, complete with jewel-encrusted cover and handwritten manuscript.

Collector books will have full-colour interiors, embossed covers, and other features that will make them feel like pre-Gutenberg illuminated manuscripts. They will be gifts for people who have everything or decor for people who want to be seen as having everything. They will not be meant for reading, just visual enjoyment. Remember the special edition of The DaVinci Code with all the beautiful pictures? Like that, only more so. Prices will be upwards of $75.

So where will you be in the transition? Leading the wave with your e-reader device or lugging around printed books? As I always tell my 85-year-old mother-in-law, how do you know you don’t like it if you haven’t tried it? Just like cell phones 15 years ago (who needs one of those?!?), e-readers are here to stay.

My Kobo Reader arrived this weekend.  And wow, it’s a very nice light reader — almost Star Trek:TNG-like. It makes my Sony PRS-505 Reader seem heavy and cumbersome. The contrast reminds me of the difference between Mac and PC. And at only $150, it’s a great entry-level reader for people new to e-reading technology. It’s not the golden $99 price point yet, but getting there.

The Kobo doesn’t have the wireless capability that comes with a Kindle, but then my Sony doesn’t have wireless either. Plug and load is still a great way to get what you want to have on the go. The Kobo interface is simple and easy to use, with the only disappointment that I can’t load ePubs that I’ve purchased from other stores.

Then the “a-ha” moment arrived. The Kobo isn’t really competing with Sony or any of the other readers on the market. Kobo is going after Amazon. The Kindle reader isn’t really the “thing” that Amazon is interested in selling. Amazon wants to be the source for content — much like iTunes is the source for music and video and Apple happens to sell the device you can play them on. Kobo wants to play too.

Kobo has focused its efforts on content delivery over multiple platforms. You can read your Kobo books on your Blackberry or iPhone, on your desktop computer, on other readers (including the Sony), or now on its own portable reader. So the hardware solution doesn’t need to be perfect; it just needs to be cheap, cheerful, and easy to come by. (Though the Kobo is very cute, with the soft blue rubber navigation button on front and grey quilted back. Plus the 100 pre-loaded free books sure help the open-the-box, get-started ease.)

No, the real money for Kobo will come from selling content that can be used anywhere a consumer wants it. With multiple platforms available for reading what I buy, I’m going to do all my e-book purchasing at Kobo from now on. And that’s just what they want to happen.

P.S. It makes a wonderful Mother’s Day gift.  My 68-year-old mother LOVED it as soon as she touched it. Not sure what she’ll do with her collection of fabric book cover protectors and bookmarks, but she’ll surely find some way to make the Kobo even more homey than it already is.