With Amazon.com grudgingly moving toward higher retail prices on e-books, the online retailer can expect to see its dominant position in the young e-book market melt away, according to a top analyst. Credit Suisse analyst Spencer Wang in a new research report said he expects Amazon's e-book market share to drop from 90 percent today to 35 percent over the next five years. Apple's iPad is poised to grab a piece of the market, and Wang sees Google as a major player as well.

Here's a snippet from Wang's report via the Wall Street Journal's MarketBeat:

Near term, we suspect that the iPad and the new eBook agency pricing model, which requires that Amazon increase retail prices to be more consistent with Apple’s pricing, will provide Kindle with the most market share headwind. Going forward, we can envision a scenario where Apple, Amazon, and Google eventually split the market. Therefore, we expect Amazon’s share of eBooks business to fall from 90% currently to about 35% over the next five years.

Google is still engaged in legal wrangling over a settlement deal that will allow it to distribute millions of digitally scanned books, but the company is also working with publishers on selling new-release electronic books through its search engine.

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