Will eReaders soon cost less than a hardback?

Waterstones have cut the price of the Sony Reader Pocket Edition

When I saw that Waterstones had decided to discount the price of the less than a year old Sony Pocket Edition reader to £99 my immediate reaction was that it simply wasn’t a big enough to compete with Amazon’s new £109 Kindle.

Let’s face it, when for a mere £10 more customers can get WiFi, a built in (though DRM-crippled) store and instant access to their books, why would anyone want a rapidly old-fashioned standalone reader?

My next thought was that, consciously or otherwise, Waterstones had probably started a process of price reductions that will soon commoditise eReaders. My hunch is that by this time next year, the grey screened, non-web enabled standalone readers will probably be on sale in your local supermarket for under £40.

Less than a year ago I predicted that “it won’t be long before the first major supermarket starts retailing a sub £100 device” – I might have got the nature of the retailer wrong but not only are Waterstones now eeking in just under that price point, but Argos are already beating it with an £89.99 reader.

Prices are heading downwards and I suspect the pace will pick up fairly quickly.

Not only are would-be buyers going to be tempted by the keenly priced Kindle, but the iPad is soon expected to be joined by a wave of Android powered tablets, all offering much more functionality.

If a £99 Sony is going to be squeezed by a £109 Kindle (and it will), so a £229 Sony will surely look increasingly unattractive compared with a £429 iPad which, though £200 more expensive, is capable of displaying magazines and comics and picture-rich books in glorious colour.

To look competitive, eReaders are going to have follow non-premium branded MP3 players, Freeview boxes and digital cameras into those supermarket ranges of cheap and cheerful electronics which causal shoppers are happy to take a punt on and try out.

Given that you can buy an MP3 player for less than a CD, the real question is: how long will it be before an eReader costs less than the latest hardback? My hunch is we’ll be there sooner than anyone expected 12 months ago.

Comments

  1. km says:

    Actually after a lot of research I am thinking of getting the Pocket Edition even though it does not have wi-fi etc. Why? Because my local library already has hundreds of ebooks and I can’t read them on Kindle but I can on Sony’s readers. That’s a major saving. Not having a wi-fi is only a minor inconvenience. How often do you upload books? I am going to use it mostly for royalty-free books. I can use calibre software – upload dozen at a time and have something to read for months. I can also use it read news from most major newspaper and magazines – free of course -l thanks to calibre again. If Amazon allowed users to loan books from libraries no other reader would stand a chance. But why would they support libraries if most of their incomes comes from selling books?

  2. Martin Hoscik says:

    Hi km -

    I’m a big advocate of the ePub/Adobe DRM ‘standard’ which all UK booksellers have long supported. For me it’d be a major retrograde step if we lost that in favour of two competing hardware manufacturer controlled stores i.e, iBooks and Kindle.

  3. Kate Davis says:

    I agree with km, borrowing from the library is an essential feature for me and I am amazed this functionality is not being widely promoted. Unfortunately the only devices I’ve found that allow borrowing are Sony, but as I don’t want to pay ~£190 for a new touch, I’ve bought the previous model from ebay second hand.

    The Kindle looks impressive with the wifi and 3G, but when I looked at the restrictions on the file format I realised it was not the device for me. Martin Hoscik is correct an open market is advantageous for everyone.

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