After over 2 dozen comments, last weeks blog entitled Kindle vs. iPad – One Frequent Flyer’s Opinion, was one of the most controversial posts on Print CEO. Before I get beaten up again, let me start by stating that the Apple iPad offers many features including movie watching, internet access and it works as an e-reader. With the recent success of the iPad, the e-reader market is getting hot. While the two products getting the most attention are the Amazon Kindle and Apple iPad, Barnes & Noble took some aggressive action recently that showed it wanted a piece of the e-reader market.
The size of the e-reader market is unknown. One reason is that Amazon does not disclose how many Kindles it has sold. Another reason is that even though Apple is talking about sales of 2 million iPads, since it offers more than just e-reading, it is not clear how many are being used to download newspapers, books or magazines.
But that does not stop experts from trying. Late last year Forrester predicted that Amazon sold 600,000 (newly discounted) Kindles during the holiday season and 1.8 million by the end of 2009. Overall, Forrester predicted U.S. sales of three million e-readers in 2009 with Amazon owning 60% of the market. However, those predictions did not include 4 recent changes: sales of Kindles through Target stores, Sony’s Reader broad distribution and multiple price points ($170 to $350), the huge success of the iPad and the latest marketing push from Barnes & Noble.
While Kindle was one of the first to market, Barnes & Noble is playing catch-up. But that may change now that Barnes & Noble announced a low-cost, Wi-Fi-only version of its Nook e-reader and cut the price of its original Nook. Barnes & Noble has cut prices for its Nook e-reader from $259 to $199 and introduced a $149 Wi-Fi version. I noticed this recently when I walked into my local Barnes & Noble to find a small booth in the front of the store with someone talking about the Nook.
Clearly price point is playing a major role in the e-reader market. According to an article on CBSnews blog site TechTalk, “The difference between the $259 price point and $199 is huge. At $199 and lower, you figure you can get ROI in a year while you ponder whether you want or need an iPad (assuming you primarily intend the device to be for reading).”
As I mentioned in last blog post, there are reasons I continue to like the Kindle, which include the initial price point and the free data plan, but I am keeping an eye on the iPad and am envious of the features.
What about you? Are you using an e-reader or considering an iPad?
Howard Fenton is a Senior Consultant at NAPL. Howie advises commercial printers, in-plants, and manufacturers on workflow management, operations, digital services, and customer research.
Discussion
By Adam Dewitz on Jun 23, 2010
Apple announced yesterday that it has sold 3 million iPads. It 80 days to do so: http://www.apple.com/pr/library/2010/06/22ipad.html
By Patrick Henry on Jun 23, 2010
What's perennially amazing about Apple is its ability to resist price commoditization even in its most popular products. Barnes & Noble, Amazon, etc., aren't cutting the prices of their e-readers because they want to. Apple, on the other hand, never cuts price until it chooses to, usually by leapfrogging its own technology with the next gotta-have-it: in this case, the phenomenally successful iPad.
If only we could find a way to infuse print with this kind of marketing magic!
By Howie Fenton on Jun 23, 2010
Did anyone see the announcement this morning?
Amazon cut the price of the 6" Kindle e-reader to $189! Wow. That's less than I paid for my girl friends Kindle for Christmas. Clearly the war has begun. But do you think its over market share or survival?
By Chuck on Jun 24, 2010
Let me first start by saying that I am a big fan of B&N. I love going to their stores. To support all that real estate and all those employees, they charge too much for everything. That's part of the problem with this way too late to the party and too expensive Nook hardware. Furthermore, when you really look closely at the iPad versus these primitive readers, the decision is a no brainer. People you would never expect to buy such a thing, are becoming huge fans. The Nook can't even compete with the Kindle-- there is no ROI for either of these devices.
Frankly, it is becoming clear that the Kindle hardware, although beloved by early adopters, is obsolete. It's done. The Nook is stillborn. This is playing out in the market, and as Adam posted, Kindle is getting it's "clock cleaned" by the iPad.
Interestingly, though, Amazon wins big hardware or no. They had to build the Kindle because there wasn't a suitable device to which to push content; they really made the concept of an ebook reality and created the market.
Now, with the Kindle software on iPad, and in the near future on a variety of Windows 7 and Google Android tablets, the innovation will be far more than Amazon, which let's face it is basically a physical and digital warehouse attached to an ecommerce engine in the cloud, can keep up with. They will no longer need to manufacture and support the hardware infrastructure, though, and benefit even more from a vastly increased reader community on all the new devices.
By Debra Bowlby on Jun 24, 2010
While I love all this technology and use it everyday as a graphic designer and printer I am always excited to see new "toys" come out. However, the bottom line for me is... I like to still turn pages in a book.
By Heath on Jun 24, 2010
Since the week of its launch, I've been a huge fan of the iPad. It has literally changed the way I consume media completely.
This past weekend my daughter and I went to Barnes and Noble, something we have been doing together for many years. As we parted ways and explored the store it just wasn't the same as it used to be for me. Why? Because I knew I wasn't going to buy something. It became an exercise in exploration and when if I found something I liked I would purchase it right there from the Kindle store on my phone for half the price. Magazines are cheaper too, and look better in iPad. The battle now is to be the content provider and the devices are loss leaders to accomplish this.
I've loved using my iPad. Until last night. As a fortunate recipient of an iPhone 4 yesterday I saw what the future will look like for tablet displays and e-ink technology has a questionable future.
It looks just like print, only better.
By Chuck on Jun 24, 2010
Heath, I think you nailed it. B&N needs to give the Nook away, FREE, immediately, if they are going to get anywhere. Maybe buy ten books, get Nook free. It's about the blades, not the razor. It might be too late, though, even if they do that...
By Heath on Jun 28, 2010
An interesting development in regard to this article and comment thread. Amazon is now Kindle books delivering ebooks with video and sound, but only to iPhone, iPad and iPod.
http://www.pocket-lint.com/news/33964/amazon-kindle-gets-audio-video
Amazon is now providing superior features for non-Kindle devices.
By Howie Fenton on Jun 28, 2010
Heath
Cool and interesting find. According to this article the ability to embed audio and video within ebooks makes the Kindle app “the best ebook reader available in the App Store, even trumping Apple's very own iBooks”.
The first thing that pops into my head is how? Of course everyone in the development community knows how Apple feels about Flash. So it can’t be flash based, or use an application that converts flash.
According to Huffington, “Amazon has started its new venture with thirteen enhanced eBooks available today, which include travel guides and cookbooks -- obvious choices for embedded video. These thirteen books are just the beginning -- in the press release, Amazon said that they "look forward to seeing what authors and publishers create for Kindle customers using the new functionality of the Kindle apps."
Also interesting is this comment from zdnet, “This is killer functionality because it truly redefines the ebook as being a different animal to the book, which should help boost adoption. It also shows how Amazon’s ebook department is more than happy to compete directly with the Kindle department, offering functionality and features that Amazon’s own ebook reader cannot offer.”
Do you agree that adding audio and video within ebooks makes the Kindle the best ebook reader available and/or that this is now a killer app?
Discussion
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