December 24, 2009
Can Amazon Retain Its Top Position In The E-Book Marketplace?
Currently there are a large number of manufacturers jostling for position in the relatively new, but rapidly growing, e-book reader market. The high level of competition is a clear indication of the level of growth expected in this sector. And this strong competition is going to be good for consumers as manufacturers fall over themselves to improve specifications and offer lower prices.
There is an impressive list of major manufacturers with e-book readers in various stages of development – and in some cases, ready for imminent release. Sony, Asus, iRex, Plastic Logic, Barnes and Noble – not to mention Microsoft and Apple – are all lined up and jostling for their share of the market.
There’s not much doubt about the current market leader of course. 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 19 this year, after what seemed like a long wait, they started shipping the international Kindle 2 to over 100 countries worldwide. In a way, it’s a kind of backhanded compliment to Amazon that almost every new e-book reader that is announced (and there are plenty, the list above is far from exhaustive) and which shows any promise whatsoever, is immediately named the “Kindle Killer”. Right now, the Kindle is setting the benchmark which must be achieved, and then bettered, in order to achieve success.
In case anyone feels that the Kindle’s current dominance is bordering on unassailable, it’s probably worth remembering that Amazon were a pretty late entrant to the market when they first launched the Kindle. The first e-book reader is generally held to be the Franklin eBookMan which launched in 1999 – a decade ago. The Sony PRS was also available prior to the Kindle’s 2007 launch.
A variety of factors made the Kindle such a huge success for Amazon. In the first place, Amazon had a strong association with books, being one of the biggest online retailers. They also had a huge selection of books available for download – they currently offer over 300,000 titles on their Kindle store. The wireless connectivity facility – with no ongoing fees – was also a big selling point.
However, just as Amazon came from nowhere to take the lead position, some of the other contenders could just as easily do the same. For example, Barnes and Noble have more than one million titles available for download to their new Nook e-book reader. They will also adopt the ePub format – which most readers under development seem to be using. The Kindle format is proprietary. Pick a Kindle book – read it on your Kindle.
The Nook will also allow you to “lend” books to your friends and family for a fourteen day period. During this period, the borrower will be able to read it and the lender won't have access to it on their Nook – just like lending a “proper” book actually. The only difference is that you will be guaranteed to get it back.
The next generation Sony reader – the Sony Daily Edition – will be a large display format, like the Kindle DX, but unlike the DX it will have touch screen control options. It will also allow users to download e-books from participating public libraries on loan. Again – just like a proper book.
Most of the other readers in development have a number of features that may make them more appealing to consumers than the Kindle. Amazon have a fight on their hands – and it seems sure that they won’t relinquish their top position without a fight. Given their innovating role in the development of the market thus far, and considering the importance of the Kindle ebook reader to their business, it seems reasonable to expect them to have a few new ideas yet to be unleashed.
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. Let's hope that the fierce competition that is currently unfolding will drive down far enough enough to move e-book readers out of the geek domain and into the mainstream personal mobile tech market.
Olan Butler - Technology Specialist - Computer Services
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Filed under Personal Technology by Guest Writer
