Why Does the Aura HD Exist?

[Hartsock]

I like my Aura HD but find myself wondering why it exists. Who in the heck puts out a limited edition eReader? Seems to me if you go to the trouble of designing and producing a new device you want to sell as many as possible. I know what Kobo says but anyone have any insight beyond that? My only thought is that Kobo is trying to judge the market for a premium eReader. Otherwise we seem to be in a rush to the lowest cost device.

Dana

[patrik]

The perception of scarcity is a huge buying motivator....

[TechniSol]

I believe it was mentioned that the manufacturer offered screens to Kobo that may have been originally offered to B&N... Real or apocryphal, I cannot say.

Maybe it was a way to get a good deal on screens and offer a larger reader for sale and get their feet wet. Chances are they just laid the Glo board out again to fit the space, tossed in a larger battery, and rebuilt the UI. All cheap enough to do a limited run and get their feet wet to size things up. The molds for the cases probably cost almost as much as the total software investment which is being used across multiple models.

Personally, I think an 8" or larger screen would have been a better target, but I'm guessing a lot of people like their Auras just fine.

[DNSB]

Originally Posted by TechniSol

I believe it was mentioned that the manufacturer offered screens to Kobo that may have been originally offered to B&N... Real or apocryphal, I cannot say.

Apocryphal going by comments from eInk and Kobo.

Originally Posted by TechniSol

Maybe it was a way to get a good deal on screens and offer a larger reader for sale and get their feet wet. Chances are they just laid the Glo board out again to fit the space, tossed in a larger battery, and rebuilt the UI. All cheap enough to do a limited run and get their feet wet to size things up. The molds for the cases probably cost almost as much as the total software investment which is being used across multiple models.

Personally, I think an 8" or larger screen would have been a better target, but I'm guessing a lot of people like their Auras just fine.

My suspicion is they were going for the perceived premium market. Offer a slightly larger screen and a higher resolution at a premium price. So far, no one else seems to be interested in offering an equivalent device. B&N's Nook division is still bleeding red ink and Amazon has pretty well stopped manufacturing ereaders using eInk screen going by the reports that they have slashed their orders for eInk screens to levels consistent with refurbishing returned units. Perhaps, we'll see a similar size and resolution device from Amazon using Liquavista displays in the future. Though the comments about the quality and resolution of Liquavista displays may keep them off the market even longer -- the colour is generally described as washed out and the resolution demonstrated so far maxed out at ~160dpi. They are colour and fast enough for video so perhaps an ereader with audio/video capability and better battery life than an equivalent sized LCD tablet.

Regards,
David

Perhaps they're testing the markets for larger devices?

As far as I can tell, the mainstream readers are stuck in a 6" rut. There are some larger screen devices, but they don't seem too popular (perhaps because of price) so introducing something in their category would be too risky?

I can't testify as to why the Kobo Aura HD was released as a "limited edition" reading device (though I'd place my bet on it being a tentative test of the market), but I personally feel as though the device exists because Kobo saw the potential for a previously untapped market demographic and thought it wise to release something for that market.

After all, 6-inch and 5-inch readers have already been in circulation for quite some time, and I myself know a large number of people with 7-inch-and-above tablets who prefer them over e-ink devices for the sole reason that the prefer the larger screen real-estate; I'm very happy with my current device, but I can say with confidence that if Amazon releases an e-ink reader with a larger screen in the future, I'll be very sorely tempted.

I think that Kobo has made an intelligent exploratory business venture by releasing a device with a larger screen. Judging by my unofficially acquired market statistics (ie, seeing how many people on various websites have purchased the Aura HD, whether existing or new Kobo customers), it was a venture well planned. They may be releasing another, non-limited-edition device in the future. Then again, the phrase "limited edition" may simply be a marketing ploy. Rarity sells.

[FJames]

The "limited edition" thing might have been aimed at the business investment market rather than customers. The consumer market for dedicated e-readers has been falling lately, and investors are getting a bit edgy about companies too specialized in that field. If Kobo introduced a new mainline model at a higher price level and it bombed, they would be trashed by investors. So make it look like a limited test of market preferences rather than an unwise gamble on the future...

[robko]

Originally Posted by FJames

The "limited edition" thing might have been aimed at the business investment market rather than customers. The consumer market for dedicated e-readers has been falling lately, and investors are getting a bit edgy about companies too specialized in that field. If Kobo introduced a new mainline model at a higher price level and it bombed, they would be trashed by investors. So make it look like a limited test of market preferences rather than an unwise gamble on the future...

I'd agree with this if they were still a small "independent" company, but as part of Rakuten I don't think this matters to them that much anymore.

I think they were going for a bit of a niche market with a bigger screen (and perhaps testing the waters a bit) and maybe have been rather pleasantly surprised by the uptake. This could also be like the classic Disney movies that periodically come out for a bit then get pulled (in order to drive perceived need).

I find the extra size makes for a really nice reading experience, although the weight/balance isn't nearly a nice as the older readers.

[samhy]

I don't know if it was because of the "limited edition" thing or because of low quantities in stock, but the Aura was out of stock pretty fast in France.

First thing, FNAC is the only place selling Kobo products in France and it's a b&m as well as an online store. I bought mine in store the day it was released (May 16th) and when I needed to have it exchange on May 25th there were only two left in that store. Few days later the website was stating the out of stock status. Then the Aura was back around June 13th-14th.
Since last September it's the first time that I've seen a Kobo product unavailable, even for a short time.

[GeoffR]

I think the reason behind a premium e-reader is to attract the premium ebook customer: one who is happy to buy the top of the line ereader rather than the budget model or a general-use tablet might also be more likely to buy significantly more books than the average customer.

If Kobo is only breaking even on selling devices, and expects the profits to come from ebook sales, then increasing the spend per customer is probably quite important. I imagine one customer who spends $500 per year on ebooks is worth a lot more than 100 customers who spend $5 each.

[TechniSol]

It's probably a very fair statement that people who buy dedicated ereaders are considerably more likely to spend more money on books. But where they spend varies, though I suspect all vendors count on the convenience factor especially on products(books, etc) under $10... or whatever is the current magic no-brainer number.

[Anak]

Maybe it is a limited edition because Kobo wasn't sure how many units they could ship. So they probably ordered a small initial batch to test the real demand and offered it first in only a few territories.
Marketing it as a "limited edition" suggest it can be out-of-stock at any given time and urging potential buyers to actually buy one soon and don't wait for similar devices from competing companies.

[geormes]

I wonder how the actual sales compared to the company's projections?

[JD Gumby]

Limited edition because they seem to have bought an existing batch of screens (as opposed to ordering screens for themselves) that the original orderer decided to not buy after all and built a rather shoddy e-reader around them (everything I've seen of the Aura makes it look like a rush job).

[samhy]

Originally Posted by JD Gumby

Limited edition because they seem to have bought an existing batch of screens (as opposed to ordering screens for themselves) that the original orderer decided to not buy after all and built a rather shoddy e-reader around them (everything I've seen of the Aura makes it look like a rush job).

Denied apparently.