The Kindle e-book reader has been a phenomenally successful product for Amazon. It’s currently the best selling product on the Amazon site. The Kindle accounts for 60% of all American e-book reader sales and both the Kindle 2.0 and its larger sibling the DX are now selling in over 100 countries around the world – extending Amazon’s reach and hugely increasing their potential customer base.

At the moment, Amazon’s main competition is Sony – trailing in second place but with a very respectable35% share of the American e-book reader market. However, there are plenty of manufacturers who have watched the rapid development of the e-book reader sector and now want a piece of the action. This year’s Consumer Electronics Show (CES) had a separate section for e-book readers for the first time ever. Over two dozen companies - some of them household names, others less well known - had e-book readers on display. This is a clear indication of the business community's faith in this market segment.

What many of these aspiring manufacturers seem to have failed to notice is the fact that the technical aspects of the hardware, whilst undoubtedly important, are part of the big picture. The success of Amazon’s Kindle reader up to now has been the result of a variety of different factors over and above its technical specification. Amazon is in an almost unique position which affords it significant competitive advantages when it comes to promoting both e-book readers and the e-books to use on them.

Amazon is, lest we forget, the biggest retailer of books on the face of the planet – bar none. In the eyes of the buying public, it therefore enjoys a very strong association with books. It also has a a long history with consumer electronic devices – admittedly in the capacity of a merchant – but there is a strong perceived relationship nonetheless. Of course, the Kindle has now established Amazon’s credentials as a manufacturer (although they subcontract the manufacture) in a big way.

So, in reality, any who think they can mount a serious challenge to Amazon just by launching a reader which has a few extra technical features than the Kindle, or is a little bit, could be in for a nasty surprise. It probably needs another instantly recognisable household name who is both trusted and respected to make any serious impact on the scene now. Companies such as Microsoft or Apple would be prime contenders – and they both have readers of their own, or devices which could be used to read e-books at least, under development. Sony now have a well established e-book reader pedigree, so they must consider themselves to be a contender. Barnes and Noble? Maybe.

One thing’s for sure, no small electronics manufacturer is going to mount a serious challenge to Amazon’s current market domination. Partnerships, such as Plastic Logic’s agreement with Barnes and Noble, who will provide the books for the Que reader, might throw up a few surprises. However, unless there is a truly surprising development in the offing, it looks like the Kindle reader is actually going to become the literary world’s equivalent of the iPod.