As the battle heats up in the e-reader war there is great opportunity, for the consumer. For the content provider things are a bit more difficult. Every device seems to have it’s own proprietary software — rendering (at best) a few other formats useless.
So what format should you use? At this point there is no one best answer, just strategic compromises. For instance, the Kindle has huge market penetration and a fantastic marketplace but only renders black and white. So children’s books will be a bit lack luster. The iPad renders color but some users complain about reading on a backlit screen and certain formats require additional software. Android Handhelds are portable, render in color but don’t read the popular MobiPocket format. Barnes and Noble Nook only reads three of the thirteen formats available but they have distribution in their favor.
So you’ve written a book which means you already know who your audience is. Now figure out what devices they’re likely using and build to them. Create a couple formats and let your fans decide how to fulfill their needs.
Resource: Wikipedia published this handy sortable grid to help you decide the best way(s) to publish your masterpiece.