Growth was achieved double e-reader market globally in 2009 until 2014 rather than healthy growth because the growth was driven by price cuts.
Attendance iPad tablet computer Apple Inc production really hit the producers landslide eReader (electronic digital book reader). Research firm iSuppli Corp. estimates, iPad will eat about 20 percent of e-reader market share globally in 2010.
“The main advantage is the breadth iPad for eReader media functionality. With iPad, users can access the digital books, multimedia, and Internet. While the e-reader, users can only read digital books,” says Senior Analyst, iSuppli Corp., Michael Yang. Although prey iPad, iSuppli asserted, the e-reader is not going to die soon. iSuppli estimates that global sales volume of e-reader will continue to rise an average 39.6 percent per year from 2009 until 2014.
iSuppli found that global sales volume of e-reader on the 2009 yet to reach five million units. However, due to the volume of global e-reader sales continue to increase, iSuppli believes the e-reader a global market will reach 26.5 million units in 2014. However, iSuppli warned, double the growth achieved by the e-reader market globally in 2009 until 2014 is not healthy growth.
iSuppli said the growth was driven by price cuts erode profit at risk of large producers. iSuppli noted, the e-reader is a product that demands a very high production costs because it does not use traditional displays such as LCD (liquid crystal display), but the electronic ink display which produced E-Ink Corp.. The producers chose the e-reader display for E-Ink E-Ink display does not emit light like LCD.
As a result, the e-reader users can read digital text in a more natural, such as when reading text printed on plain paper.
“With E-Ink display, e-reader not only become much more expensive than when using the LCD. Therefore, E-Ink display is also not capable of displaying colors as bright and as sharp as LCD. Originally intended as an advantage, E-Ink display at this time precisely weaknesses of e-reader, “said Yang.
If you do not want to bothered by bigger losses, iSuppli suggests, the e-reader manufacturers should switch from electronic ink and replace the e-reader display with LCD. With LCD displays, iSuppli rate, producers will be able to eReader also offer additional features such as multimedia. iSuppli noted, the e-reader manufacturers who first cut is the price of Barnes & Noble Inc.
In June 2010, the price of production eReader Barnes & Noble, the Nook, fell to USD139 per unit, from USD199 per unit. After that, Amazon.com Inc. was followed. Still in June 2010, Amazon cut the price of Kindle 2 from USD259 to USD189 per unit per unit. Not enough to cut the price of second Kindle, Amazon Kindle DX also cut the price to USD379 per unit, from USD489 per unit.
Looking at Barnes & Noble and Amazon e-reader to cut the price of each, Sony Corp. did not want to catch. Therefore, Sony cut the price of three flagship e-reader. Daily Edition Reader price fell $ 50 to USD300 per unit, Touch Edition Reader price fell $ 30 to USD170 per unit, and the Pocket Edition Reader price fell $ 20 to USD150 per unit. iSuppli rate, price cuts undertaken by the producer’s e-reader will be able to increase sales volume. However, iSuppli asserted, that growth will only happen in the short term.
“In the long run, eReader will not be able to resist the iPad. Due to the presence iPad, an e-reader makers are also threatened a big loss for eReader profit margins are now running out. With such a low price, the manufacturer of the e-reader will only be able to cover the cost of production, “Principal Analyst, iSuppli Corp. said William Kidd.
When the volume of inflamed eReader producers, noted iSuppli, global sales volume exceeded estimates iPad shot up. In April 2010, iSuppli estimates that global sales volume iPad in 2010 will reach 7.1 million units. However, because Apple was able to sell three units also iPad in just 80 days after first launching iPad in the United States on April 3, 2010, iSuppli is now forced to revise up the global sales forecasts for 2010 iPad.
ISuppli is the latest estimate of global sales volume iPad in 2010 will reach at least 12.9 million units.
“Apple has boosted production volumes iPad. Therefore, iSuppli had to publish this revision,” said iSuppli Corp. Director, Monitor Research Rhoda Alexander. iSuppli asserted, how many million units are able to produce any Apple iPad in every month, then the tablets will still be sold.
However, iSuppli found, iPad production capacity will remain limited in 2010 due to limited supply of components, especially the LCD panel and NAND type flash memory.
“At this point, the main problem of global sales volume growth in 2010 iPad is production, not demand. Apple iPad production was tightly controlled to maintain the quality so that can not use any components from new suppliers,” said Alexander.
