Form A Queue If You're A Kindle Killer | The Communication Blog

Thursday, November 12, 2009

Form A Queue If You're A Kindle Killer

By Andrew King

There are currently a large number of manufacturers fighting it out in the nascent, but rapidly expanding, e-book reader marketplace. The high level of competition is a good indication that rapid growth is expected in this area. And this strong competition will be good news for consumers as manufacturers fight amongst themselves to enhance specifications and reduce prices.

There is an impressive list of major players who have e-book readers in various stages of development - and in some cases, ready for imminent release. Sony, Plastic Logic, Barnes and Noble, iRex, iRex, - not forgetting Microsoft and Apple - are all queuing up to grab their fair share of the market.

There's little doubt about the current market leader. The Amazon Kindle reader has not only dominated the market, but has been pivotal in its development since it was launched in November 2007. Now into its second iteration with the Kindle 2 and the large screen Kindle DX, Amazon has secured a 60% share of the American e-book reader market. The Kindle reader is now their number one product and, on October' this year, after what seemed like a long wait, they started shipping the international Kindle 2 to over 100 countries worldwide. When you think about it, it's a backhanded compliment to Amazon that every new e-book reader in development (and theres no shortage of these, the list above is hardly exhaustive) and which shows any promise whatsoever, is immediately dubbed the "Kindle Killer". Right now, the Kindle is setting the benchmark which must be achieved, and then bettered, in order to achieve success.

Just in case anyone thinks that the Kindle's current leadership position is bordering on unassailable, it's probably worth remembering that Amazon were a late entrant to the market when the Kindle was launched. The original e-book reader is generally agreed to be the Franklin eBookMan which was launched in'99 - a decade ago. The Sony PRS was also available prior to the Kindle's 2007 launch.

The Kindle was such a phenomenal success for Amazon due to a number of different factors. First of all, Amazon had a strong association with books, being among the largest online retailers. They also offered a huge choice of books to download - at the moment they have in excess of 300,000 titles on their Kindle store. The option of wireless connectivity - with no ongoing fees - was another big selling point.

Just as Amazon came from nowhere to secure the number one position, one of the other contenders could do exactly the same - and in the short term. For example, Barnes and Noble have more than one million titles available for download to their new Nook e-book reader. They will also use the ePub format - which the majority of readers in development seem to be favoring. Kindle's format is proprietary. Purchase a Kindle book - read it on your Kindle.

The Nook will also let you "lend" books to your family and friends and family for a fourteen day duration. During this time, the borrower can read it and the lender won't be able to access it on their Nook - just like lending a "real" book in fact. The main difference is that, unlike a paperback, you will be guaranteed to get your e-book back.

Sony's new reader - the Sony Daily Edition - will also have a large display format and wireless connectivity - like the Kindle DX - but unlike the DX it will incorporate touch screen controls. It will also let users download e-books on loan from participating public libraries. Again - just like a conventional book.

Many of the other readers in the pipeline have features that could well make them more appealing than the Kindle. Amazon definitely have a fight looming - but it seems sure that they won't surrender their number one position without a struggle. They have played a pivotal role in the development of the market up to now, and bearing in mind the critical importance of the Kindle to their current business model, it seems reasonable to expect them to have a few new tricks up their corporate sleeve.

Given the level of activity amongst all of the different manufacturers, it looks like the e-book reader market is about to enter a period of exponential growth. It is to be hoped that the fierce competition that seems about to be unleashed will drive prices lower and transport e-book readers out of the high tech domain and into mainstream personal mobile tech market.

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