This time last year, the e-book reader market was like the Wild West – or maybe the gold rush would be a more appropriate metaphor. Following the huge success which Amazon had achieved with its Kindle reader – first of all with the Kindle 2.0 in February of 2009 and then with the large display DX model in the summer of the same year – a small army of personal electronics firms seemed to be developing, releasing or updating e-book readers of their own in order to grab a share of the new and rapidly developing market.
Sony and Barnes and Noble were bursting a gut to get their new readers launched before the 2009 festive season and Samsung, Plastic Logic, Asus and a host of others were rushing to get their readers on the market as fast as they could. The Computer Electronics Show (CES), held in Las Vegas in early 2010, had a dedicated e-book reader section for the first time ever. E-book readers were a hot developing market.
Today, just a few short months later, the scene is somewhat different. The price of e-book readers has tumbled. The latest third generation Kindle now has a Wi-Fi only entry level model available for only $ 139 – less than 40% of the $ 359 price which the Kindle 2.0 launched. Barnes and Noble have also dropped the price of the Nook reader to S 149 – and this will probably be cut again before the festive season.
Several new e-book readers which were going through the development process – including Plastic Logic’s Que – have been cancelled. The market seems to be entering a new stage in its development – and whether there is any place in it for pure electronics manufacturers or not is highly debatable. Amazon’s business model is very well suited to selling lower priced readers and making a profit on the follow up sales of Kindle books. A similar strategy would be available to Barnes and Noble of course, but it’s debatable as to whether or not they can benefit from the same types of economies of scale as Amazon.
Clearly the release of Apple’s iPad tablet computer has been an important influence in this. E-book reader prices were always going to fall – but the appearance of the iPad definitely seems to have jollied things along quite a bit faster. However, bearing in mind the fact that the new third generation Kindles sold out shortly after they were released, the iPad doesn’t look like the Kindle Killer that it was expected to be.
Aside from the debate about e-ink displays being better to read on than back-lit screens, there is – for the moment at least – enough daylight between the Kindle price and the price of the entry level iPad to make the Kindle the more attractive choice for anyone whose chief interest is reading books. The iPad’s monthly connection fees will be a stumbling block for many customers.
It does appear that there is ample room in the market for both the Amazon Kindle and the iPad to co-exist – for the foreseeable future at least. Other manufacturers of e-book readers, including big players such as Barnes and Noble and Sony, may well find things tough as hardware prices keep dropping.
Read about the Amazon Kindle reader for yourself and view the wide range of Kindle accessories available to help you personalise your reader.
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