Report: E-reader sales will surge at the $150 price point

Summary:The e-reader market is set to surge---once the devices hit an optimal price of about $150, according to research from the Yankee Group.

The e-reader market is set to surge---once the devices hit an optimal price of about $150, according to research from the Yankee Group.

In a report, Yankee Group forecast that e-readers will generate $1.3 billion in revenue in 2010 and hit $2.5 billion by 2013.

The number of companies pitching e-readers has swelled. At CES 2010, there were a bevy of models introduced---all taking aim at Amazon's Kindle. Yankee Group estimates that 6 million e-readers will be sold in 2010. By 2013, 19.2 million e-reader units will be sold a year.

Yankee Group defined the e-book reader as devices with the following characteristics:

  • Processor speeds limited to 700 Mhz or less;
  • ePaper displays;
  • Storage capped at 4 GB.

Yankee Group's forecast is based on the Amazon Kindle, Barnes & Noble Nook, Sony Reader, Interead’s COOL-ER, Plastic Logic’s Que, enTourage’s eDGe, Hearst’s Skiff and Foxit’s eSlick.

Also see: CES 2010: Top 10 new e-book readers ·

CES 2010: Top 10 new e-book readers

By 2013, the installed e-reader base will be more than 36 million.

Yankee Group reckons that e-reader adoption will be limited to heavy readers until prices hit a sweet spot of $150 or so. The research firm sees e-reader prices falling 15 percent a year over the next five years. That price drop will significantly boost adoption.

Related:

Can the Kindle work as an app platform?

Amazon gives publishers a bigger royalty cut for Kindle; Apple Tablet defense?

Topics: Hardware

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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