The news today that Amazon has released a Kindle client for Apple’s iPhone and iPod touch says a lot about the company’s eBook strategy. Amazon’s Kindle device has often been described as wanting to become the iPod of books, but unlike Apple it’s clear that the e-tailer sees itself in the business of selling content and not just to drive sales of hardware.

In terms of music and video sales, Apple’s iTunes Store exists purely to add value to and increase uptake of the company’s iPod and AppleTV devices, with the major record labels and Hollywood studios receiving the majority of revenue from any content sold. Until fairly recently, content from iTunes could only play back on Apple’s hardware – for movies and TV shows this is still the case – helping to lock customers into the iTunes/iPod ecosystem. In contrast, eBooks bought from the Kindle store are now able to be read on at least one non-Kindle device, Apple’s iPhone, with more to come. This suggests to me that Amazon is taking a large enough cut from each eBook sold to justify potentially diluting sales of the Kindle device itself.