Are New Tablets Slowing The Growth Of E-Readers?
Some reports today suggest that Kindle Fire sales will cut into sales of Amazon’s other Kindles. For a variety of reasons, though, it’s too early to say that lower-priced color tablets are affecting black and white e-reader sales.
First of all, here are the reports from today:
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» Goldman Sachs analyst Heather Bellini “sees non-Fire Kindle shipments in the first quarter down 44 percent sequentially from Q4,” reports Forbes. “She now sees non-Fire Kindle shipments this year of 25 million units, down from [Goldman’s previously projected] 35 million.” (Meanwhile, Goldman Sachs expects Amazon (NSDQ: AMZN) to sell 19.2 million Kindle Fires in 2012.)
» Barclays Capital analyst Anthony J. DiClemente expects Amazon will sell 23.5 million Kindle e-readers and 15.3 million Kindle Fires in 2012. DiClemente writes, “While there is potential for cannibalization on the higher end of the Kindle eReaders as many first time buyers could trade up to the Fire, given tablet users are likely to consume more media—not just e-books—and tend to shop more overall, we view this as a positive outcome. That said, we believe dedicated eReaders and Tablets can continue to coexist as bifurcated markets as each have their benefits—like the non-glare screen of Kindle eReaders—and certainly price points.”
» Finally, the Taiwan-based E Ink Holdings, which provides the screens for black-and-white Kindle e-readers, “reported worse-than-expected sales for December,” according to news site FocusTaiwan. (Link via Publishers Lunch Automat.) “E Ink reported Friday its December consolidated sales totaled NT$1.59 billion, down 55 percent from November and also down 57 percent from a year earlier.” This appears to suggest that fewer people are buying dedicated e-readers now that lower-priced tablets like the Kindle Fire and Nook Tablet are available.
Posted In: Gadgets, Tablets, Media & Publishing, Books, e-books, e-readers, Companies, Amazon, Kindle, Barnes & Noble, Nook

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