Wednesday, November 4, 2009

Kindle Killers Lining Up

By Andrew King

There are an incredible number of manufacturers currently fighting it out in the new, but ever expanding, e-book reader market. The high level of competition is a strong indication that rapid growth is anticipated in this sector. And this will be good news for consumers as manufacturers strive to enhance specifications and offer lower prices.

The list of major players who have e-book readers in various stages of development is impressive. Barnes and Noble, Plastic Logic, Sony, Asus, iRex, - don't forget Microsoft and Apple - are all in line and struggling to secure their fair share of the market.

There can be little doubt about the market leader at the moment of course. The Kindle reader from Amazon has not only dominated the market, but has been driving and shaping its development since it hit the market in November 2007. Now into its second generation with the Kindle 2 and the large display Kindle DX, Amazon has a 60% share of the American e-book reader market. The Kindle reader is now their top selling product and, on October 19 this year Amazon commenced shipping the international Kindle 2 to over 100 countries around the world. It's a backhanded compliment to Amazon that almost every new e-book reader in development (and there's no shortage of these, the list above is far from exhaustive) which shows any potential whatsoever, is instantly christened the "Kindle Killer". Currently, the Kindle sets the benchmark which must be attained, and then bettered, in order to achieve success.

If it appears as if the Kindle's present leadership position is unassailable, then it's probably worth considering that Amazon were a somewhat late entrant to the market when the Kindle was released. The original e-book reader is generally considered to be the Franklin eBookMan which launched in 1999 - ten years ago. The Sony PRS was also released before the Kindle's launch in 2007.

The incredible success of the Kindle was due to a variety of different factors. Amazon had a very strong association with books, being among the largest web retailers. They also had a huge choice of books available to download - presently they have in over 300,000 titles on offer at the Kindle store. The option of wireless connectivity - with no fees - was another big plus.

However, in the same manner that Amazon came from nowhere to take the number one position, any one of the other key contenders could repeat this feat - and faster than you may think. For example, Barnes and Noble have over one million book titles for download to their new Nook reader. They have also elected to use the ePub format - which most of the readers under development seem to favor. The Amazon Kindle format is proprietary. Buy a Kindle book - download it - and read it on your Kindle (or your iPhone - but not on another e-book reader).

The Nook will also permit you to "lend" books to your friends and family for a fortnight. During this time, the borrower can read it and the lender will be unable access to it on their Nook - exactly the same as lending a "real" book. The big advantage is that, unlike a dog eared paperback, you can be sure that you will get it 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.

At the end of the day, given the level of activity amongst all of the various manufacturers, it looks as if the e-book reader market is about to start growing even faster. Hopefully the rampant competition that seems about to be unleashed will force prices downwards and take e-book readers out of the high tech domain and into mainstream personal mobile tech market.

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