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Friday, September 17, 2010

Why the e-Reader Market Share is Still Growing

Last year, purpose-built new e-readers were one of the most popular devices in the consumer electronics (CE) marketplace. Today, there is still plenty of consumer interest surrounding the e-reader market.

However, the industry analysts are forecasting ongoing price erosion, targeted competition from the Apple iPad, and the continued overall sustainability of the standalone e-reader shipment growth.

Therefore, despite the potential impact that the tablet PC market may have on the standalone e-reader market, e-reader shipments will grow from 12 million units by the end of this year, to 35 million in 2014, according to the latest market study by In-Stat.

"Tablet PC shipments are taking off, fueled in particular by the Apple iPad introduction. Yet, there will still be a revenue opportunity for e-reader suppliers and OEMs since tablet PCs and e-readers target different consumers," says Stephanie Ethier, Senior Analyst, In-Stat.

Standalone e-readers will address the needs of avid readers, to whom the reading experience is central to their product selection criteria. In contrast, tablets are better suited for consumers who prefer a stronger multimedia experience, and only light reading.

In-Stat's latest market study found the following:

- E-reader price points will continue to fall over the remainder of 2010, with a $99 model likely available in time for the upcoming holiday season.

- Tablet unit shipments will reach approximately 58 million in 2014.

- Among the semiconductor devices used in e-readers, the processor ASP will be the most resilient over the forecast period, only declining 18 percent from 2009 to 2014. Despite significant increases in NAND Flash densities, the dollar value of Flash declines 60 percent over the same period.

- The semiconductor total addressable market for e-reader suppliers will exceed one billion dollars in 2011.