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September 15, 2010

eReader Unit Shipments to Reach 35 Million by 2014 Despite Threat from iPad: In-Stat

The advent of eReaders fascinated avid readers all over the world when they entered the market. However, with the advent of most modern tablet PCs, the focus is now being shifted from the simple eReaders to sophisticated devices like iPads.

While the potential threat from the devices like iPads still exists, the eReader market is expected to grow from 12 million units by the end of this year to 35 million by 2014, according to a research from In-Stat (News - Alert).

Apart from the competition from tablet PCs, eReaders market is likely to be hit with drastic price erosion, according to In-Stat. Cost factor was among the major concerns that prevented the large-scale adoption of eReaders in most markets.

Earlier in Aug., ComputerWorld reported that the price for some eReaders with black-and-white displays could drop below $100 before the end of 2010, and possibly hit $50 in 2011, citing an analysis from Yankee Group (News - Alert).

In-Stat’s “The Worldwide eReader Market: Life After the Apple iPad” finds that eReader price points will continue to fall over the remainder of 2010, with a $99 model likely available in time for the holiday season.

The “tablet PC wave” created by Apple (News - Alert) iPad will have a huge impact on eReaders. Tablet PC shipments, according to In-Stat will reach approximately 58 million units in 2014. However, the demand still exists for eReaders, according to researchers.

“Tablet PC shipments are taking off, fueled in particular by the Apple iPad introduction. Yet, there will still be a revenue opportunity for eReader suppliers and OEMs since tablet PCs and eReaders target different consumers,” Stephanie Ethier, senior analyst, In-Stat, said.

“Standalone eReaders will address the needs of avid readers, to whom the reading experience is central,” Ethier added. “Tablets are better suited for consumers who prefer a stronger multimedia experience, and only light reading.”

Among the several semiconductor devices used in eReaders, the processor ASP will be the most resilient over the forecast period, only declining 18 percent from 2009 to 2014, In-Stat finds.

Despite significant increases in NAND Flash densities, the dollar value of Flash declines 60 percent over the same period.

Further, the semiconductor TAM for eReader suppliers will exceed one billion dollars in 2011.

The In-Stat research covers major manufacturers including Amazon, Barnes & Noble, and Sony; display suppliers including E Ink Holdings, Liquavista, and Qualcomm; and processor suppliers including Freescale (News - Alert) Semiconductor and Texas Instruments

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Erin Monda


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