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April 2010
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E-Reader Market will Continue to Grow despite Launch of Tablets

According to Andrew Nusca’s article on potential growth in the e-book market following the Apple iPad launch, “the average e-reader is 47 years old, makes 75,000 a year and reads two books per month.”  This generation tends to associate reading with pleasure, and the lightweight, easy to navigate, Kindle 2 strives to meet those demands.  Therefore, the e-ink technology that the Kindle uses is much more akin to reading a regular print book than any computer.  The general consensus is that the e-ink technology is more comfortable for reading for longer periods of time.  Can anyone picture curling up with an iPad at the beach?

The tablet market, which includes the Apple iPad , is geared towards younger, internet savvy users.  The younger group tends to search the internet for smaller chunks of information such as articles, blogs or social networking sites.  The average teen spends nearly a full time work week surfing and downloading media from the internet each week according to Nusca.

Another key factor for growth is price.  Gene Munster, an analyst with Piper Jaffray, suggested that Amazon will lower the price of the Kindle to $149 according to an article from CNET News. That would distance the single purpose e-reader market from the multifunctional tablet market.  So, in essence, its all about the marketing strategy.

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