Get Ready for $99 eReaders

By Amy Gilroy
eReaders at $99 that are not connected to any particular bookstore are expected to flood the market by Christmas and some will be available this summer, say retailers.
As suppliers compete for a slice of the expected eReader bonanza, Manhattan-based retailers Adorama and Datavision, say they are expecting many sub-$100 eReaders for Christmas, and Hollywood, FL-based BrandsMart USA plans to stock a $99 model this summer.
Current low street prices for eReaders are between $129 and $149.
Ahron Schachter, VP of new product development/merchandising for Adorama, in NYC said he’s spoken to more than one supplier planning a $99 eReader for Q4. “You are going to see major, major names out there [at that price]. The eReader will be the digital disposable camera,” he said.
BrandsMart director of merchandising Mark De La Cruz, says he’s planning to sell a 5-inch (non-connected) eReader with a color screen from a vendor he won’t disclose this summer. “I’m hoping to get it before the summer, I’m trying to hit ‘Dads and Grads,’ he said.
Is $99 the ticket to make eReaders a must-have item this summer? “I don’t know if it will be this summer when it heats up; we’re just planning to be pretty aggressive,” said De La Cruz. The chain currently carries Sony Readers and will add four additional brands this year for a total of eight models.
Just how popular the bargain-basement, non-connected eReaders will become remains to be seen. After all, it’s the FREE wireless connection that made the Amazon Kindle so popular, noted Yankee Group analyst Dmitriy Molchanov. But he agrees that $99 eReaders are a possibility for Christmas, especially with a new Freescale system-on-a-chip processor on the way, which should cut the retail price of an eReader by $30 later this year.
And how secure is the market for eReaders in the face of the iPad and other tablets? The connected eReaders may fare well, at least initially, again, because of their free over-the-air downloads. Molchanov said, “AT&T CEO Randall Stephenson has said that he doesn’t expect the iPad’s 3G connectivity to be a hit and that consumers will largely rely on the devices’ WiFi connection for the time being. I agree. Smartphones and eReaders then, will differentiate themselves with their always-on ubiquitous [free] connectivity.” iPad pre-order sales are proving Stephenson correct. Note: IPad data plans will run $14.99/month for 250 MB or $29.99/month for unlimited use.
However, not everyone is an avid reader and tablets should steal away some of the more casual readers. Some people would rather spend $499 to upgrade to a slate device rather than $249 for a limited use eReader said Ted Theocheung, general manager of PC & digital home ecosystem at Synaptics which makes screens for both eReaders and tablets as well as other portables.
Source: CEoutlook
Photo caption: It’s the free wireless connection that may protect eReaders such as the Amazon Kindle from lower priced newcomers and multi-use tablets.