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

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.

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TOPICS: Hardware
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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?

Topic: Hardware

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7 comments
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  • Ereader definition

    Is there a reason that their definition limits the
    processor speed and storage size?
    terryc@...
  • What is the point?

    even at 150$ why will i pay any price to get my books laced with illegal DRM?
    Mectron
    • Re DRM

      You obviously don't have one. Very few of them
      use DRM, which is not illegal, by the way. I
      don't agree with it but it's a way to protect the
      publishers and writers. There are a plethora of
      devices out there that are multi-platform and
      allow you to download books from VARIOUS sources.
      jamerican413
  • RE: Report: E-reader sales will surge at the $150 price point

    I love my Kindle 2! The text-to-speach function also allows me to listen via my headphones to hundreds of books without me turning a page, yet I can read along if I want. Prefect since I am bedridden.
    kgettys
  • RE: Astak eBook Reader at $199

    I think it is a shame that Larry, Sam, and Andrew did not see the Astak lines of eBook Readers at CES. The Pocket PRO runs $199 and has: E-Ink, 20 formats, 24 languages, Adobe Digital Editions, Text-To-Speech, SD card slot, user-replaceable rechargeable battery, 16GB SD card slot, comes in 6 colors, and includes the crush-resistant case and ear buds! It is at: www.theEZreader.com. We are trying to get Larry and Sam, and Andrew to do a review. We had a 1200 sqaure foot booth at CES and were mobbed. Why did they miss us?
    RobertbEZ
    • Good question

      I own the Kindle 2 and the Sony Pocket Reader. My first purchase was the Sony, but I picked up the Kindle due to the vastly greater library Amazon had at the time over Sony. Since then of course Sony has moved strictly to the e-Pub format, which is a nice move. My point is that even owning what I do, I like to see the competition amongst companies because we the consumer are the reapers of the benefits of it. What you are offering sounds spectacular, and if it is everything you describe at $199 you are sure to sell a bunch. Good luck, and here's one vote to see the review of your Pocket Pro.
      Aragorn_z
  • RE: Report: E-reader sales will surge at the $150 price point

    The price is right but the episodes where Amazon deleted 1984 (insert irony here) and Sony installed new software that obliterated that woman's access to her paid content(insert disgust here) has completely soured my desire for a toy controlled by corporations that store my personal reading lists.

    I'll stick to books and general purpose computers that are already at a $200 price point and have far more utility.
    Theo.X