Mobile e-reader sales to peak at 14 mln units in 2013

telecompaper [ ] 2010-05-27

Mobile e-reader sales to peak at 14 mln units in 2013

Mobile broadband e-reader sales are expected to peak at 14 million units in 2013, according to a study by Informa Telecoms & Media. The sale is expected to fall by 7 percent in 2014 as the segment faces increased competition from a wide range of consumer electronic devices. 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. This is likely to lead to a segmentation of the e-reader market into low price, low feature models and higher price devices with advanced features. Company senior analyst Gavin Byrne said that Apple's iPad is perhaps the highest-profile competition for dedicated e-readers. 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, Byrne said. In order to survive, there are a number of approaches that vendors can take. 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. 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. The current absence of an obvious subsidy model for mobile network operators, the launch of the iPad and market dynamics are likely to limit the market in the long-term. Overall Informa Telecoms & Media is sceptical about the sales growth for mobile broadband e-readers, Byrne said.