Friday, January 08, 2010

Variety in E-Book Readers


I am a huge fan of the Amazon Kindle. Since I bought the first model, I have preferred reading books on it rather than in hard copy. It is light and functional. The range of reading choices is superb. Over the last year I have read more than a dozen books on economic panics as well as a range of other books of interest. For the most part if it is available in print there is a way to get it on the Kindle.

CNET in covering the consumer electronics show in Las Vegas ran a story this morning that raises a question about whether the range of new ebook readers on the market will represent the beginning of the end of the trend for these devices. Clearly from the picture there are a lot of manufacturers who are trying to get a foothold in this niche. The most prominent competitor to the Kindle seems to be the Barnes and Noble device called the Nook or the newest version of the Sony E-Reader.Wired also did a story and some short reviews on the eight or nine top e-readers.

When the Nook came out most of the reviews on it found it wanting. Some of the features, like being able to loan books to other readers, proved to be clumsy. Reviews on the Sony device have been a bit more positive. Sony is adding a wireless feature (using AT&T not Sprint) which bring the Sony and Amazon products closer. Sony has also added a music player for its device.

But the real question remains, how large a market is there for a single purpose device? True, the Kindle can read all sorts of products including periodicals. But will the new rumored Apple Tablet close out the two or three leading products in the e-reader category? From my view the market will divide into three parts if the Apple device is released. The first will be devices under $300 which will be mostly pure e-readers. The minimum to play at this level will require a clear screen, long battery life and wireless connectivity.

At the higher end would be a niche for the Apple Tablet or similar devices. My guess is that the price point here will be double or triple the price for the Kindle type device. But to play in this arena the device needs several additional features. The press reports on the Apple Table suggest that it will have color, some type of more robust connectivity (3G) and a much better video component. Clearly, a couple of begun to build a device that runs on a variation of the Windows Mobile platform. For my money I would stay away from that platform.

The third group of products will be the also rans. I think most of the devices pictured in the CNET story will be in that group. The next six months will help to define this new market in media devices. Some have suggested the Apple Tablet will be a Kindle killer. For my money, I will still own both.

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