Study: People like Kindles, but like them even better at $50

We've already started seeing evidence of a price war in the electronic reader market, with Sony's new $199 device undercutting the cheapest Amazon Kindle by $100. But the prices will have to come down a lot more to get the average consumer on board, according to a new study. Forrester Research found that "the price points for how most consumers value eReaders is shockingly low -- for most segments, between $50 and $99."

Here's more from Forrester analyst Sarah Rotman Epps:

The maximum addressable market for eReaders as they are currently priced is substantial--but to reach the largest market possible, the prices will need to come way down. And even then, eReader are never going to be as big a market as mp3 players, which 110 million US consumers own.

Here's a chart from the study. As you can see, interest skyrockets at $98 or less.

Amazon in July knocked $60 off the price of Kindle 2 (now $299). The larger-screen Kindle DX still sells for a whopping $489. If Amazon wants to go for mass consumer adoption, expect those prices to drop. Or maybe Amazon wants to keep Kindle as a high-end product, and find other avenues to distribute its electronic book, newspaper and magazine content.

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About Eric Engleman

ERIC ENGLEMAN is senior technology staff writer for TechFlash and the Puget Sound Business Journal, covering online retail giant Amazon.com. Engleman tracks Amazon's increasingly complex business, spanning ecommerce, Kindle, cloud computing, and more. He's been covering technology and other industries for the Business Journal since 2003.

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