Research and Markets: Competition Heats Up in the E-Reader Market as Sony Adds a Wireless E-Book to its Lineup

DUBLIN-(Business Wire)-September 25, 2009 - Research and Markets(http://www.researchandmarkets.com/research/a01abe/wireless_delivery) has announced the addition of the "Wireless Delivery of Digital Content Propels E-Book Adoption" report to their offering.

The hot, new topic in the consumer electronics (CE) world is the electronic book (e-book). Worldwide e-book shipments are expected to reach 28.6 million units in 2013. Market drivers include new entrants to market, international expansion of e-book availability, anticipated price declines, and the electronic distribution of newspapers.

Online retail giant, Amazon, is emerging as the leader in the e-book market with its Kindle lineup. The key to Amazon's success is its content delivery service. The company has partnered with cellular network operator, Sprint, to enable Kindle users to wirelessly download digital e-book content directly to the Kindle via the Sprint EVDO network. It is this seamless content-to-hardware delivery experience that is driving Amazon's popularity in the e-book market.

This report provides a comprehensive view of e-book shipments, sales revenue, average selling prices, and expectations for wireless-enabled e-books. An analysis of e-book bill of materials and the total semiconductor revenue opportunity is included, as well. Five-year forecasts are provided for all factors.

On August 5, Sony Corporation announced that it will add two e-books to its PRS e-reader lineup. The PRS-300 and PRS-600 will be priced at $199 and $299, respectively, and will be available at retailers such as Best Buy and Wal-Mart. On August 26, Sony announced another new addition to its e-reader lineup: The Sony Reader Daily Edition. This will be priced at $399, offer 3G connectivity through AT&T, have a touchscreen, and open up a wider range of free and paid-for e-book content to its users, according to this report.

The aggressive pricing for the low-end e-readers, and the introduction of a wireless e-reader, is clearly Sony's attempt to encroach on the lead Amazon currently holds in the e-book market with its Kindle lineup. Amazon and cellular operator, Sprint, have partnered to allow all Kindle users to wirelessly access digital e-book content via the Sprint EVDO network. There is no fee to the user, and a PC is not required. Content is downloaded directly to the Kindle; and this seamless content-to-hardware delivery experience has been a major driver of Amazon's success in the e-book market.

"Until Sony announced its wireless e-reader, the company remained at a distinct disadvantage to Amazon," says Stephanie Ethier, In-Stat analyst. "But now Sony can not only compete with Amazon more directly, but can also address a wider range of consumers than Amazon since it offers more affordable e-reader models to consumers who may not want wireless connectivity."

Overall, the e-reader market continues to heat up as Amazon updates its Kindle lineup and as Sony expands its offerings. Worldwide e-reader shipments are expected to reach 28.6 million units in 2013, up from 924,000 in 2008. Market drivers include new entrants to market, international expansion of e-book availability, anticipated price declines, and the electronic distribution of newspapers.

Recent research, Wireless Delivery of Digital Content Propels E-Book Adoption , has an in-depth analysis on the worldwide e-book market. In addition, the author is about to publish the results of a recent survey of North American owners and future buyers of e-books.

Key Topics Covered: