Ebooks = $1 billion

[Andrew H.]

Originally Posted by leebase

I don't think the iPad predicters were all that far off. They didn't strip out the connectivity, but eReader prices PLUMMETED. And in doing so, they are selling quite nicely. There is no way dedicated readers would sell well against multi-function tablets without a significant cost differential.


Lee

This is absolutely right. McQ suggested that eReaders strip out connectivity, etc. because he assumed that that was the only way for them to get their prices low enough to compete with the iPad - and that the only way they could compete with the iPad was to differentiate themselves by focusing on their core reading function and not try to compete with the iPad.

He gets a lot of credit for assuming that Amazon et al. could compete with the iPad at all.

I don't think he can be penalized too much for not realizing that Amazon could offer a wifi kindle with an improved screen and battery for $139...and it was really surprising just how quickly Amazon did move. And yet what they did to reach that price point was to strip out 3G connectivity and emphasize that the K3 was a *reader,* not a tablet.

So, yeah, I think he gets some credit. Although I'm not convinced about the e-mail, though.

[Russell Brooks]

The more that e-reader prices will drop, the more the publishing industry will evolve to adapt if they want to stay in business. Hopefully it'll inject a new interest in books.

[leebase]

<Excuse me while I pat myself on the back>I was reading on my iPhone long before the iPad was announced. At $300 or more, I wasn't about to buy a dedicate eInk reader, even though I thought they would be "nice to have".

When the iPad was announced, I was one of those who instantly said "I want one of those" and when the price was announced at $500, I predicted that the Kindle DX would have little reason for being (it was only $10 cheaper) -- and that the 6" devices would drop in price and do fine.

I love the latest Kindle TV commercial. No words, just shots of the kindle being taken out and about -- so convenient, so light. It makes me want one even though I have an iPad.

I predicted the eInk readers would hit $99 by next Christmas....and the Kobo hit it already for this Christmas.

There is just no reason for "one winner take all". eInk devices dropped in price quickly enough, and dramatically enough -- that they have a reason to exist with their strenghts: light, long lasting battery, simple, read in full sun.

And, just as well, iPad's and the like have good reasons to exist and be used for eReading in addition to watching movies, tv, surfing the web, and hundreds of thousands of apps and games.

There is a price/capability/target market divide and think there are markets for both. There is no "xyz is for REAL readers" divide, though. That's just a fantasy by some folks intimidated that their choice isn't the only one available.

Lee