Now, I have the Kindle for iPhone app as a curiosity but have no real interest in using it to read a book. The screen is just too tiny.I do not own a Kindle and have no interest in paying over US$350 for what, to me, would be a single-purpose device. An Apple mediapad would doubtless do everything an iPod touch does, only larger. And it could do everything a Kindle does, too, only in color.

Will this bother Amazon? Not in the least. I cannot imagine that Amazon really wants to be a consumer electronics hardware company. Its investment in Kindle was necessary to kick-start the e-book industry. Many companies had tried e-books previously, without much luck.

Amazon has shown that an e-book reader can find customers, provided the content is available. Amazon has the content part nailed and will, presumably, be happy to see Apple create a much larger installed based of e-book-capable hardware than Kindle ever will.

My prediction is that if Apple really does the mediapad, Kindle will go away. But, probably not until Apple can reach a $350 price for its rumored new product. That make take a while, as something makes me think the super iPod touch will cost $500 or more when/if it is released.

In which case, the Apple mediapad and Kindle will coexist for a time, but eventually there will be no need for the Kindle and Amazon will be happy to be out of the hardware business.