You should publish your book into as many digital formats as possible (even if certain formats translate less well than others) because this expands your potential audience of readers. Review the outputs of each format for acceptability after you publish.
Here’s a summary of the formats offered:
EPUB - This is your most important format! EPUB is an
open industry ebook format. This is the format we distribute to
Apple, Barnes & Noble, Sony, Kobo, Diesel eBooks, and others. If
your book is available in epub, it can be read on the most popular
ebook readers and ebook reading software applications (Like Stanza on
the iPhone or Aldiko on Android devices), and will gain the widest
distribution via Smashwords’ distribution outlets (EPUB is a
requirement for inclusion in Smashwords’ Premium Catalog, and it’s
what we distribute to every retailer except Amazon).
Mobipocket (Kindle) – Mobipocket, A.K.A. MOBI, allows your books to be read on the Amazon Kindle, so this is an important format for you. Mobipocket is supported on many handheld devices and e-reading applications. Mobipocket is a requirement for distribution to Amazon.
Palm Doc (PDB) - PalmDoc is a format primarily used on Palm Pilot devices, but software readers are available for PalmOS, Symbian OS, Windows Mobile Pocket PC/Smartphone, desktop Windows, and Macintosh. Be sure to turn off “smart quotes” in your source file, otherwise they may appear garbled in your PDB file. Our PDB is little more than ugly plain text.
PDF - Portable Document Format, or PDF, is a file format readable by most devices, including handheld e-readers, PDAs, and personal computers. It’s a good format if your work contains complex layout, charts or images. Odds are, if your work looks good in Microsoft Word it will look good in PDF. PDF is also a good option for readers who may want to print out your book on their home computers. On the negative side, PDF is a rigid, inflexible format because it’s not reflowable, so it’s horrible for reading novels. Your customers can’t easily change the font size or style to match their preferences, the text isn’t reflowable, and the reader is forced to read page by page.