First loss for eInk in 2 years

[emellaich]

Well, according to the original source, it was due to 'offseason effects' and inventory adjustments at customers.

I would say that we don't know enough after one quarter. It is quite possible for this too happen without being a long term slow down. Certainly, goods like these sell much lower in the quarter after Christmas than they do in the Christmas quarter. As far as the 'inventory adjustments' again we can't tell. No matter how popular an item is, there is a true sales level. If you order twice as much as the true sales level this indicates you will have high inventories that need to be worked off. For example, the iPad is expected to sell 50 million in 2012. If some production planner orders 100 million iPads, then inventory will be high even though the iPad is a hit.

Of course, the opposite could be true and these numbers could indicate a problem with sales. We will just have to monitor the numbers to see what happens.

****** However, there was an interesting tidbit down the page on the same article. The headline for another article is: E Ink lands 6-inch color e-book reader module orders from Amazon, says paper (Feb 20). I think this is interesting enough on its own, that I will start a new thread on this so it doesn't get lost.

[elcreative]

Originally Posted by Zetmolm

There's not a single e-reader that contains a hard drive, let alone a hard drive manufactured in Thailand. And as to other components, well, if there was a shortage that affected makers of readers we should have seen a shortage of readers in our stores and/or increasing prices. None of that happened.

Did anyone say a reader had a hard drive??? And a shortage of components doesn't necessarily lead to a shortage of readers and/or price increases as those who have ample stocks/pre-ordered stocks could happily be cushioned but eReaders DO use many other electronic components as well as the eInk screen not being manufactured by the same people who do everything else... it could be that eReaders producers have ample stocks (there is a "slight" worldwide economics problem) to deal with current demand but eInk are having problems sourcing/selling for future items... we don't know so this is all speculation and hardly sensible for anyone to come down with their own "hard and fast..." this is what's happening. Until we have some facts (with sources) everything is up in the air...

[RnR]

Some more information - http://www.electronista.com/articles...r.10.quarters/

Seems nothing to do with Thailand and everything on a possible changing market. But its only 1 data point.

[elcreative]

Originally Posted by RnR

Some more information - http://www.electronista.com/articles...r.10.quarters/

Seems nothing to do with Thailand and everything on a possible changing market. But its only 1 data point.

Now that looks like information... I never actually said that it did have anything to do with Thailand just that it might be an influence... but I did say, "...it could be that eReaders producers have ample stocks (there is a "slight" worldwide economics problem) to deal with current demand..." which this article would seem to support...

[petrucci]

Given that content producers are developing content with motion/video, I think that e-ink may be in trouble. This is really a shame, as I love the product. I hope that a company produces an e-ink device with a screen that is at least as large as a regular piece of paper. I have been waiting for one for years.

[Hellmark]

Originally Posted by Zetmolm

Sure. Asia is so small that a flood in one part automatically affects factories almost on the other side of the continent.

There were floods in multiple countries. Japan had issues from the earthquake/tsunami. Thailand flooded. Issues in China, etc.

Originally Posted by afv011

It certainly affected Hard Drive manufacturers.

As well as many other industries. Thailand is a major hub for electronics parts due to their cheap labor, and often lax laws.

Originally Posted by Zetmolm

There's not a single e-reader that contains a hard drive, let alone a hard drive manufactured in Thailand. And as to other components, well, if there was a shortage that affected makers of readers we should have seen a shortage of readers in our stores and/or increasing prices. None of that happened.

Most ereaders aren't hard drive based, but that wasn't the only thing effected. Also, one thing that helped stave off rising costs was that many ebook readers were simplified. They don't have all the frills they used to. Sony dropped the aluminum bodies. Kindle no longer has the keyboards, etc. Also, if the issues with supply largely effected the display manufacturing process, it would have kept things fairly localized, plus with having multiple plants, it could have just effected costs and supply wouldn't have been hurt enough to cause shortages. Not to mention, some large scale manufacturers have contracts to help regulate costs, so if the cost to make something goes up, but they're contracted to sell them at a certain cost, the part maker has to eat it, while the final product doesnt' change in price to the consumer.