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e-book Price War or e-book Reader War? Can Kindle or e-ink Survive When Apple Releases iTablet?

September 1, 2009

in iPad,Kindle

It is now well-known that Apple is going to release tablet – a big-screen version of iphone/ipodTouch with more functional capabilities. If it comes out what would happen to kindle or similar e-ink based e-book readers? All those weired analysts’ estimates of kindle sales projection based on secondary data or guess are misleading. Amazon has decided not to release the kindle sales figure, and according to Jeff Bezoz, sucess of kindle in terms of profitability would require 4-6 years. But the electronic industry is changing so fast how amazon amazon can keep its lead position in kindle. Does amazon has competitive advange in devising a cutting-edge e-book reader? Wouldn’t it be better if amazon give access contents to different e-book readers while keeping itself out of business of a dedicated device? In fact, in the face of competition amazon is offereing all its titles to iPhone/iPodTouch. If apple comes with a bigger screen iTablet or netbook type device amazon would still continue to do that. The relevant question is: what would happen to kindle sales if apple releases iTablet?

If amazon makes money from kindle sales then it might drop drastically, if not, then why do amazon bothered about a dedicated reader? However, it need to be noted that amazon has essentially made people aware about the pricing of e-books. And by selling bestsellers at $9.99 amazon has created a venue to take on publishers who don’t want to sell e-books at cheaper prices that people are wiliing to pay.  Now we see a lot of retailers are also offereing e-books close to that range – even Sony has to reduce the prices of the bestsellers, and B&N is also now offering bestsellers at $9.99.  It’s now also well known B&N is also going to release a dedicated device. It seems that all three big players in the e-books markets playing the same rule – we see  convergence to prices while fighting on dedicated e-book readers. There is a limit how far the prices can go down. Does it mean a dedicated device can only ensure profitability in e-book business? If so, consumers will pay the price. In that case apple seems to rescue consumers if they release iTablet. Apple is keeping itself out of e-book business; but everybody seems intested in releasing their e-book applications on iPhone. That means iphone got universal acceptance due to its popularity. Does it mean the slow death of e-ink devices?

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