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"Clearly Apple sees this as a way to build a library of 'exclusive' content in iBooks and mute the Kindle threat. For me at least that shows me just how threatening the Kindle Fire is to their model."

iBooks Author is not a reaction to the Kindle Fire. Apple has been working on this since before there were rumors that Amazon was going to introduce a tablet of their own.

Steve Jobs even told his biographer about it [1]. Jobs passed away in October, a week after Amazon announced the Kindle Fire.

[1] http://venturebeat.com/2012/01/19/digital-textbooks-fulfills...

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