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WirelessDevNet.com Press Release
Mobile Broadband e-reader Sales to Peak at 14 Million Units in 2013
London, UK – May 27, 2010 – According to the latest research from Informa Telecoms & Media e-reader* sales are expected to peak at 14 million units in 2013, before falling by 7% in 2014 as the segment faces increased competition from a wide range of consumer electronic devices. This decline will be driven by a shift away from dedicated e-readers towards other multifunction device types, notably mobile phones and tablet-form-factor computing devices including the iPad. This is likely to lead to a segmentation of the e-reader market into two groups; low price, low feature models and higher price devices with advanced features.
“In its current incarnation, the e-reader offers a good reading experience, high levels of portability and great battery life. However, it is under threat from the availability of electronic book (e-book) content on multifunctional devices such as mobile phones, tablet computers, netbooks and other portable consumer electronic devices. Apple’s iPad, available in the UK market this week, is perhaps the highest-profile competition for dedicated e-readers. Mobile broadband e-readers will also face competition from much cheaper non-connected models that are targeting a lower retail price in order to stimulate adoption,“ comments Gavin Byrne, senior analyst at Informa Telecoms & Media and contributing author of Mobile Broadband Devices (www.informatm.com/mbd).
“This is a real a wake-up call for e-reader vendors and will force them to improve both their products and their communications about the benefits of owning a dedicated e-reader. We believe this will cause the market to segment into two different groups –low price, low feature and high price, advanced feature models,” he adds.
In order to survive, there are a number of approaches that vendors can take. They can develop low-cost e-readers with minimal features that can be used in conjunction with a PC or USB dongle to access additional content. For example, e-readers like the Kobo (US$148), may appeal to the cost-conscious reader and its price point is further sweetened by the inclusion of 100 classic titles on the device.
Alternatively, they can improve feature sets in mid and high-end e-readers to transform them, over time, more into tablet computing devices. These will in effect become more like smartbooks than e-readers. Early steps in this direction include Barnes & Noble’s latest software update for the Nook which adds games and a more open web browsing functionality. Many e-reader companies are already looking to develop an electronic reading platform, initially based on their e-reader devices, but that will extend across e-readers, mobile phones, netbooks, note-books and desktop PCs.
“There are certainly a number of things that vendors can do to counteract this growing threat. However, the current absence of an obvious subsidy model for mobile network operators , the launch of the iPad and market dynamics are likely to limit the market in the long-term. Overall Informa Telecoms & Media is sceptical about the sales growth for mobile broadband e-readers,” concludes Byrne.
About Informa Telecoms & Media
Informa Telecoms & Media (www.informatm.com) delivers strategic insight founded on global market data and primary research. We work in partnership with our clients, informing their decision-making with practical services supported by analysts.
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