Monday, March 5, 2012

eReader Sales Plummeting in the First Quarter of 2012

According to a report released by DigiTimes Research, eReader shipments around the globe will be dropping rather significantly in the first quarter of 2012. DigiTimes said that this drop in the shipments of eReaders is due to the current availability of tablets that have similar functionality and are cheaper.

According to the report released by the daily tech newspaper company based in Taiwan, eReader manufacturers will most likely only ship about two million units in the first quarter. This is a huge drop from the nine million units that were sold in the fourth quarter of 2011.

Of course, certain quarters always do better than others, simply due to the time of year that it is. Certain eReaders like Amazon’s Kindle and Barnes & Noble’s Nook are incredibly popular gifts to give during the holiday season, so that definitely causes a spike in eReader sales. Despite all of this, DigiTimes claims that the release of more practical, less expensive tablets like Amazon’s Kindle Fire and Barnes & Noble’s Nook Tablet will put a large dent in the sales of eReaders.

"The launch of Amazon's Kindle Fire tablet PC has resulted in a substitution effect for Kindle e-book readers, pushing Amazon to reduce its orders for e-book readers from upstream suppliers since the beginning of 2012," the researcher reported.
However, DigiTimes said that in the future they believe that eReaders will “bounce back and positively flourish.”

"Overall, global shipments of e-book readers amounted to 22.82 million units in 2011, increasing 107 percent from a year earlier," the firm said. "Annual shipments of e-book readers are expected to top 60 million units by 2015."

That seems hard to believe after considering the drop of eReader sales in the past two quarters. Can sales really grow 3X in the next three years? Who knows? We’ll just have to wait and see.

Sources: DigiTimes Research - Global shipments of e-book readers to slip to 2 million units in 1Q12 and PCMag - Report: Tablets Putting a Big Hurt on E-reader Sales

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