Free software powered by Kobo (ip-192.com reported here), a Canadian based e-book reader, allows customers to read books on a variety of different devices including PC’s, Macintosh computers, Apple's iPad and iPhone, Google's Android and RIM's BlackBerry smartphones. Kobo also allows users to search for specific titles and manage their libraries. "The race to emerge as a retail leader within the digital category is just starting," said Mike Edwards, Borders chief executive.

Borders dedicated e-reader, the $149 Kobo, comes with 100 free classic e-books. The second largest bookstore chain in the U.S. also sells the $119 Aluratek Libre eReader and two Sony readers. The company will compete directly with Barnes & Noble's e-book store and Amazon.com. While Barnes & Noble sells its own 3G and Wi-Fi enabled Nook reader for $199 (and a Wi-Fi only version for $149), Amazon pushes the $189 Kindle that offers 3G wireless connectivity. Kobo uses Bluetooth or a USB port to connect to a smartphone or a computer.

Many books in the Borders e-bookstore sell for around $10, while some bestsellers have the same list price as their paper counterparts. Borders hopes that it can capture 17 percent of the e-book market within the next 12 months and says that purchases of e-books will count towards its Borders Rewards loyalty program. Google Inc. is also expected to enter the e-book market later in the year (ip-192.com reported here).

Photo: www.imagine-your-world.com

The new eReader, scheduled to arrive on June 17, comes pre-loaded with 100 free books; including Leo Tolstoy's "War and Peace," Mark Twain's "The Adventures of Tom Sawyer," and H. G. Wells "The Island of Doctor Moreau".  A complete list of books included is available here. While the reader will feature Bluetooth, it will not have wireless connectivity via Wi-Fi or 3G.

Toronto, Canada based Kobo Inc. introduced Kobo at the CTIA in March. Like the Kindle and Nook, the device uses an electronic ink screen that mimics the appearance of ordinary ink on paper.  Devices that use e-paper technology do not draw electricity from the internal battery while displaying text and images since light reflected from the screen makes the content visible. E-paper displays can be read in direct sunlight without the image appearing to fade.

Borders said that Kobo will be available in stores in August. The company plans to have more than 1 million titles available for download via its new e-bookstore, which is scheduled to open in June.

The books will be DRM-free, which means the titles can be freely downloaded to the iPad. Popular books in the Gutenberg Project include Adventures of Huckleberry Finn by Mark Twain, The Adventures of Sherlock Holmes by Sir Arthur Conan Doyle, and Alice's Adventures in Wonderland by Lewis Carroll.

For other book titles, Apple is likely to match the price Amazon charges for its e-books. Apple already has the iBook application, which is capable of embedding video, to download e-books and news content.

While Amazon does not list the iPad, several news sites report that Best Bay stores featuring a dedicated Apple display area will have the iPad available on launch day. Online retailers like Wal-Mart are expected to follow.

To meet the anticipated demand, Apple just signed a $240 million deal with Samsung. The South Korean electronics company will supply an additional 3 million displays for current and future iPad models. Combined with 10 million displays Apple contracted from LG, the total number of iPad displays on order by Apple now stands at 13 million.

Apple plans to tap the Gutenberg Project for DMR-free e-books. Over 30,000 titles could eventually become available on the iPad. Photo: www.imagine-your-world.com

“Our Readers have long supported industry-standard formats such as EPUB and PDF. Now, what is quickly becoming the de facto standard for eBooks will be available in our store,” so Steve Haber, president of Sony’s Digital Reading Business Division.

“A world of proprietary formats and DRMs creates silos and limits overall market growth,” Haber continued. “Consumers should not have to worry about which device works with which store. With a common format and common content protection solution (DRM), consumers will be able to shop around for the content they want regardless of where they get it or what device they use.”