More Problems for eReader Makers

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It took GPS devices two years to weed out the 40 + portable GPS brands available before the shake out left just about two. That seems to be happening in eReaders within a year.

iRex Technologies is the latest eReader supplier in peril. The Dutch maker of the $399 iRex 3G eReader sold at Best Buy has filed for bankruptcy in the Netherlands due to slow sales in the U.S. according to paidcontent.org. U.S. CEO Hans Brons told an overseas publication that sales of the iRex DR800SG are below expectations and that the company has run out of working capital. But he hopes the company will emerge from bankruptcy. “It’s not a hopeless situation he said,” but noted that banks are being cautious with lending.

A key problem for iRex, is that the DR800SG failed to win FCC approval in time for the holiday season and the product didn’t hit Best Buy shelves until February this year.

The news is just one more casualty in a string of problems for aspiring eReader and tablet makers, derailed by either the quick rise of the iPad and/or caution among retail buyers due to recession. Samsung delayed the launch of the its E6 $299 WiFi eReader this spring as due to “current market dynamics,” while Microsoft and HP have delayed tablet PC launches.

Sources: Publishers Weekly via paidcontent.org and fd.nl

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