Shortcovers expects to be turning iPhones into electronic books by month's end.

Shortcovers is releasing a mini-application that lets people read books, short stories or other written works on Apple-made smart phones in a direct challenge to electronic book devices sold by Amazon and Sony.

Shortcovers software will be available for free download after it clears Apple's vetting process and makes it to the virtual shelves of iTunes online App Store.

"People aren't reading less, they are reading differently," Shortcovers User Experience Director Pamela Hilborn said while demonstrating the application at the Consumer Electronics Show in Las Vegas.

"Their attention spans are shorter."

Shortcovers plans to make money selling best -selling books and other works to iPhone readers for 99 cents a chapter, with the first chapters free so people can look about for "their next great read," according to Hilborn.

Shortcovers is a division of Canada-based Indigo Books & Music.