A recent research released by Informa Telecoms & Media forecasts that e-reader sales will peak at 14 million in 2013. However, it will fall by 7 percent in 2014 as the segment faces increased competition from a wide range of consumer electronic devices, predicts the report. 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. It 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 is seen to offer a good reading experience, high levels of portability and great battery life. However, it is under threat from the availability of e-book content on multifunctional devices such as mobile phones, tablet computers, netbooks and other portable consumer electronic devices. 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, says Gavin Byrne, senior analyst at Informa Telecoms & Media and contributing author of Mobile Broadband Devices (www.informatm.com/mbd).
According to Byrne, this threat will deliver 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.
In order to survive, there are a number of approaches that vendors can take, says the report. 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. 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.
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