Price cuts for e-book readers will drive demand for these devices in the second half of 2010, according to E Ink Holding.
According to Scott Liu, chairman of the Taiwan-based company, global vendors such as
Amazon, Barnes & Noble, Sony and Hanvon will drop their prices creating competition in the market. He said he expected total shipments in the second half of the year to be two to three times of those in the first half. He added that shipments are expected to exceed the previous forecast of 10 million units in 2010 due to such price cuts.
Mr Liu said that with the prices for e-book readers dropping significantly, companies which only produce e-reading devices with no content support could be forced out of the market by bigger players such as Amazon and Barnes & Noble who will continue to dominate.
However, he poured water on claims from market observers that claimed that E Ink Holding’s profitability could be affected by vendors’ pricing campaigns, claiming that his company and its clients had already set the EPD prices at the beginning of 2010 with E Ink promising discounts when order volumes reach the agreed amounts.
He said that demand for Amazon’s latest Kindle model had been strong and E Ink was speeding up its production to cope with the demand.
However, Amazon may face competition with Mr Liu claiming that vendors will eventually be able to provide sub-$100 e-book readers judging from the market growth.