Apple’s iPhone is quickly becoming the ebook reader of choice for many, and could steal market share from Amazon’s Kindle, according to a report from market research firm Flurry.

The iPhone and iPod Touch turned into a popular handheld gaming platform over the last year, as most of the apps released for the devices were in the games category. Even Nintendo acknowledged that iPhone games were among the reasons its DS portable gaming machine under-performed in sales.

And now it appears it is the Amazon Kindle’s turn to take a beating, as book applications for iPhone exceeded the popularity of games apps in the last four months, according the Flurry report. In September, iPhone books (some running on Kindle for iPhone) overtook games for the first time, while one in every five new apps in the App Store in October were books.

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