Thursday, September 29, 2011

Prediction: Fewer ebooks per Kindle for lower cost Kindles

$99 ereaders are here and they will push ereaders into new markets. Unfortunately, many of those new Kindles sold will not sell as many books per Kindle.

Why? Many of the early adopters of the Kindle read over a hundred books per year.

I know of one individual who is buying 'extra Kindles' to avoid the inconvenience of forgetting to pack a Kindle for travel or even walk across the house! That will increase the reading a little (in particular not forgetting the Kindle on a six-week trip...), but only incrementally.

I know of several families who either made their kids share a Kindle or wouldn't risk giving a $139 device to that young of a child who will be buying a new lower cost Kindle. This will increase reading, but not as many books per year as when the family shared a Kindle.

Multiple coworkers 'jumped off the fence' and have already ordered a Kindle. Something about the 'below $100 price point.' None of these coworkers read more than thirty books per year.

I know of a few grandmothers who will buy grandkids Kindles. Some of those grandkids are voracious readers (that is good...). Some of the grandkids will say a polite 'thank you' and never buy more than one or two books for the Kindle. :(

I also know of a few parents (mostly the moms) who still eread on smartphones or a laptop. In general, those that didn't buy a Kindle or Nook in the past were those that read less than twenty books per year. More than a few will buy a Kindle (or Nook, if the price drops enough) this holiday season for themselves (or buy it for the hubby to put under the tree). ;)

Most of the potential Kindle customers seem undecided between the $79 Kindle, $99 touch Kindle, and $99 Keyboard Kindle. Or even splurging on the $199 Fire... Amazon gave customers too much choice! Perhaps the mid-November ship date is having customers wait to decide? However, birthdays and the holidays put a forcing function on the buying decision. I would be surprised if some of the Kindles didn't sell out and force the selection decision.

I estimate that these lower cost Kindles might sell as few as half the ebooks per Kindle as the earlier Kindle sales. The lower price points are reaching out to less intense readers. However, that is a good thing; it still expands the customer base. I hope low cost ereader sales will turn some 'moderate readers' back into 'intense ereaders.' e-readership is known for 'convenience reading' which increases the quantity of books sold. :)

Neil

2 comments:

  1. Yes, I agree that Kindle-Owners-to-be won't prpbably be as voracious readers as previous ones, but even if each one reads less than ten times "voracious", and ten more times are sold, that means a doubling of the "total" reading... Not bad after all. And as you say, ease of use and comfort may lead users to increase their reading.

    Not bad at all...

    (Except that it's that much more in Amazon's market dominance)...

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  2. @The SFReader"but even if each one reads less than ten times "voracious", and ten more times are sold, that means a doubling of the "total" reading... Not bad after all. And as you say, ease of use and comfort may lead users to increase their reading."

    100% agree.

    "(Except that it's that much more in Amazon's market dominance)...
    It definitely raised the competitive bar. B&N did very well with the Nook touch and Nook Color. It will put harsh pricing pressure on B&N for the Nook Color and touch.

    I'm also reading on digitimes that it looks like Amazon isn't done for 2011! If true, that will pressure the Nook Color 2 that is eminent.

    Neil

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