Brown Book Loft Blog

In the second half of 2009, the e-book reader market was just starting to take off and competition was really heating up. Following the huge success which Amazon had achieved with its Kindle reader – first with the Kindle 2.0 in February of 2009 and then with the larger DX model in the summer of the same year – numerous electronics manufacturers were either developing, releasing or updating their own e-book readers so as to secure a share of the newly emerging 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.

Even putting the debate about e-ink displays being easier to read on than back-lit screens to one side, there is – at this time – enough of a gap between the price of the Kindle and the price of the entry level iPad to ensure that the Kindle will continue to be the more attractive option for anyone who just wants to read books. The fact that the iPad has a monthly download/connection fee will not please everyone.

It does look like there is sufficient room in the market for both the Amazon Kindle and the iPad to rub along – for the short term future at least. Other e-book reader manufacturers, including Sony and Barnes and Noble, seem destined to struggle as hardware prices will continue to fall.

Learn more about the Amazon Kindle for yourself and view the wide range of Kindle accessories available to help you personalise your reader.