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