It looks like Amazon should not worry about the upcoming Barnes & Noble’s Nook ebook reader but with the iPhone instead. According to a report by analytics research company Flurry, book apps for the iPhone have overtaken previous  most downloaded category – game apps.

Beginning September, one out of every five new apps that launched in the iTunes Apps Store were actually ebooks which can be read by many ereader apps available for the iPhone. This was not the trend from August 2008 to August 2009, when the top downloaded apps belong to the games category.

Flurry further predicts that this trend will continue and it might come a time when iPhone apps will take Amazon Kindle’s market share in ebook sales.

Amazon’s woes could have been aggravated if the rumored Applet Tablet comes into reality. The good news is, should the Apple Tablet push through, some Apple insiders are saying that it will not be geared for ebook reading but rather as a portable media device.

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