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eReaders: Win or Fail?

After a recent meeting, a few of us were sitting around chatting about what we were doing over the holidays. This conversation quickly turned towards the gifts we planned on buying for friends and family... which quickly turned into a discussion about eReaders - which ones we were getting for Wife/Mom/Sister/Girlfriend.  

The talk came back on track... sorta... and we argued the longevity of the eReader.  Will it Win, or will it Fail?  

Last Christmas, and perhaps the Christmas before, we had the netbook fad.  I wrote blogs at length as to why I felt that was a fad that would soon evolve, and ultimately stick.  My argument for the eReader is the same.   

•  In its current state, the eReader is still just a gimmick.  
•  In 2 years' time, the eReader will have converged with the Tablet, the Netbook and the Personal Media Device - a content/connectivity/cloud device.   
•  In 2 years' time, this evolved content/connectivity/cloud device will be highly advanced, highly cloud-based (no native OS, apps, or content), and highly Free - with a subscription to News Conglomerate X, Y, Z, or with a contract to Wireless Carrier A, B, C.  (The other source, by the way, is with tuition payments to private school L, M, N, O, P).  

The odd-end of the puzzle, in case the reader was wondering, is the "e-Ink" screen.  It's assumed that the e-Ink screen currently encompasses 40% of the cost of these devices.  It's expensive, but it's well worth it.  

If you haven't had the opportunity to view an eReader in the flesh... check it out. The e-Ink is the real winner here. Reading off an LCD/OLED/LED screen everyday is really rough on the eyes. In contrast, the e-Ink is literally like reading printed words on paper. Visual fatigue is greatly reduced.  

Back to the odd-end of the puzzle: Currently, the major separation between a personal media device and an eReader (software aside) is this e-Ink screen. My guess is that within the next couple years, we will have have smart screens that combine the anti-fatigue of e-Ink with the visual dynamics of LED. Problem solved.

Posted by DouganMilne, Research Analyst on 18 December 2009

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