The Kindle was second, but the lack of color seems to have allowed the Nook to put a dent in Amazon's previous dominance of the eReader market.
That doesn't mean more Nooks have sold than Kindles. The IDC report refers to the number of eReaders shipped - not purchased.
I can certainly see the appeal of the Nook. I chose a Kindle for my birthday last year, primarily because I wasn't sure if the Nook would be around for long. Clearly, I miscalculated! I enjoy reading on my Kindle but I can't say that I love it. I do wish it had color and a touchscreen.
And reading magazines on the Kindle is one of the more lackluster experiences out there.
I have to admit I am now eyeballing the Nook for my next birthday. It seems a little wasteful but I find I'm craving a little more color in my life.