Despite a lawsuit from Apple alleging trademark infringement over the name “appstore” the Amazon Appstore launched today,

The Amazon Appstore is selling apps for Android phones and tablets in a challenge to Google’s own Android Marketplace.

And, for at least today, Amazon is giving away Angry Birds Rio, for Android, for free.

At $139, even casual readers might find it difficult to ignore the Kindle.

In a rather bold stance by CNBC’s Dennis Kneale, he argues that Amazon should give away the razor (its Kindle e-reader) and charge for the blades (books). As the Los Angeles Times reported earlier, Amazon and Barnes & Noble are engaging in an e-reader price war.

Kneale’s advice is bold, sure; just bold enough to work? Doubtful.

Giving away an expensive piece of hardware that requires manufacturing, resources and development is just a plainly bad business move. It might kill the Nook, but it won’t stop people from buying the iPad, which does a ton of other things well besides reading and has already sold 3 million units.

Instead, perhaps Amazon should invest heavily in its book software and store, which work across a multitude of devices already. Build out social networking features, make exclusive deals with publishers, and, in essence, make the best book software out there.

Let the hardware guys worry about the hardware. It worked for Microsoft.

— Mark Milian

Photo: Amazon CEO Jeff Bezos displays a Kindle. Credit: Associated Press