E-Readers Need to Find New Markets to Remain Viable, Says IHS
Worldwide shipments of e-reader displays are on track to jump 108 percent to 27.1 million units in 2011, but growth will slow to 37 percent in 2012, causing manufacturers to have to devise methods of differentiation to remain competitive, according to a report from IHS iSuppli. Strong growth in 2011 derived from a “relentless marketing push” and attractive pricing, IHS said, but competition from color-display tablets will dim demand for dedicated e-readers going forward, it said.
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In 2015, the dedicated e-reader market will experience a decline in shipments, IHS said, and e-reader makers will have to seek new markets and adopt color display alternatives to maintain sales. “E-book readers can increase their appeal by adding color displays and by focusing on vertical markets like education,” said Vinita Jakhanwal, senior analyst at IHS.
One promising display technology is Qualcomm’s Mirasol display, used in a non-English e-reader called Kyobo that was developed in tandem with South Korea’s largest bookseller. The 5.6-inch, 1024 by 768-pixel Mirasol display has a density of 225 pixels per inch and matches characteristics of electrophoretic displays including wide viewing angles and readability in sunlight, Jakhanwal said. Mirasol, however, can also exhibit full color and deliver fast response speeds without compromising the low-power benefits provided by traditional monochrome e-readers, she said, noting that battery life can be weeks based on reading time of 30 minutes per day.
Although Mirasol technology has the potential to become a game-changer in the e-reader market, “its road is uncertain,” Jakhanwal said, citing limited manufacturing capacity and high production costs that could prevent widespread adoption. The Kyobo currently sells for 349,000 Korean won, or $319, she said.
Future growth in the e-reader space likely will come from vertical markets such as education, where a single use case may be preferred over the multiple features and functionalities supported by a converged device like a tablet, Jakhanwal said. But e-reader devices for use in these markets have not yet been defined or designed, she said. Nonetheless, pure-play e-readers have a number of built-in advantages -- including light weight and a battery life lasting weeks on a single charge -- that could drive future success, she said.