Archive for the ‘Computers’ Category

Stern Competition Ahead In E-Book Reader Market

Friday, November 6th, 2009

There are an incredible number of manufacturers currently fighting it out in the new, but ever expanding, e-book reader market. The high level of competition is a strong indication that rapid growth is anticipated in this sector. And this will be good news for consumers as manufacturers strive to enhance specifications and offer lower prices.

The list of major players who have e-book readers in various stages of development is impressive. Barnes and Noble, Plastic Logic, Sony, Asus, iRex, - don’t forget Microsoft and Apple - are all in line and struggling to secure their fair share of the market.

There can be little doubt about the market leader at the moment of course. The Kindle reader from Amazon has not only dominated the market, but has been driving and shaping its development since it hit the market in November 2007. Now into its second generation with the Kindle 2 and the large display Kindle DX, Amazon has a 60% share of the American e-book reader market. The Kindle reader is now their top selling product and, on October 19 this year Amazon commenced shipping the international Kindle 2 to over 100 countries around the world. It’s a backhanded compliment to Amazon that almost every new e-book reader in development (and there’s no shortage of these, the list above is far from exhaustive) which shows any potential whatsoever, is instantly christened the “Kindle Killer”. Currently, the Kindle sets the benchmark which must be attained, and then bettered, in order to achieve success.

If it appears as if the Kindle’s present leadership position is unassailable, then it’s probably worth considering that Amazon were a somewhat late entrant to the market when the Kindle was released. The original e-book reader is generally considered to be the Franklin eBookMan which launched in 1999 - ten years ago. The Sony PRS was also released before the Kindle’s launch in 2007.

The Kindle was such a phenomenal success for Amazon due to a number of different factors. First of all, Amazon had a strong association with books, being among the largest online retailers. They also offered a huge choice of books to download - at the moment they have in excess of 300,000 titles on their Kindle store. The option of wireless connectivity - with no ongoing fees - was another big selling point.

Just as Amazon came from nowhere to secure the top position, any one of the other competitors could do exactly the same - and probably faster than you might imagine. Barnes and Noble for example, have more than one million titles available for their new Nook e-book reader. They have also elected to use the ePub format - which most of the readers in development seem to be going for. The Kindle e-book format is proprietary. Purchase a Kindle book - read it on your Kindle (or maybe on your iPhone, but certainly not on any other reader).

The Nook will also let you “lend” books to your family and friends and family for a fourteen day duration. During this time, the borrower can read it and the lender won’t be able to access it on their Nook - just like lending a “real” book in fact. The main difference is that, unlike a paperback, you will be guaranteed to get your e-book back.

The next generation Sony reader - the Sony Daily Edition - will be a large display format, like the Kindle DX, but unlike the DX it will have touch screen control options. It will also allow users to download e-books from participating public libraries on loan. Again - just like a traditional book.

Many of the other readers under development incorporate features that could well make them more appealing than the Kindle. It looks like Amazon have a fight on their hands - but it seems unlikely that they will give up their top dog position without a struggle. Considering their innovative role in the development of the market to date, and given the importance of the Kindle their business strategy, it seems logical to expect them to have a few new ideas yet to be revealed.

At the end of the day, given the level of activity amongst all of the various manufacturers, it looks as if the e-book reader market is about to start growing even faster. Hopefully the rampant competition that seems about to be unleashed will force prices downwards and take e-book readers out of the high tech domain and into mainstream personal mobile tech market.

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