E-Reader Devices Procurement Category Market Research Report Now Available from IBISWorld

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Recent technology trends have helped create the largely favorable purchasing environment in the e-reader market, especially with technological improvements increasing the number of viable substitutes; however, high market share concentration slightly limits buyer negotiation power. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of e-reader devices to its growing collection of procurement category market research reports.

IBISWorld industry market research
Prices have rapidly decreased due to the rising popularity of tablets, which are now similarly priced to e-readers

Buyers of e-reader devices have a buyer power of 3.8 out of 5, indicating positive negotiating conditions for buyers. Recent technology trends have helped to create this largely favorable buying environment. “Technological improvements has increased the number of viable substitutes, such as tablet computers, due to functionality and price, increasing buyer negotiating power,” says IBISWorld procurement analyst Jesse Chiang. However, buyer power is limited somewhat due to several factors, including high market share concentration and low average supplier profitability.

Due to rapid technological advances, tablet computers can be manufactured and sold at prices that are directly comparable to e-readers. As a result, buyers have increasingly substituted e-readers with tablets because tablets offer numerous other features in addition to the ability to read digital content at the same price, decreasing demand for e-readers. “Consequently, suppliers of e-readers have had to drastically reduce prices to remain competitive with tablets,” says Chiang. The growing adoption of tablets is expected to continue through 2016, driving the price of e-readers downward and benefiting buyers.

Market profitability has limited suppliers' ability to offer discounts; buyers must instead seek discounts based upon volume or breadth of service. Further limiting buyer power, high market share concentration limits buyers to a small number of primary e-reader distributors. High market share concentration is exacerbated by the medium level of product specialization; while manufacturing an e-reader device does not require particular expertise, negotiating the rights to written content with publishers does require significant market experience, limiting the number of primary distributors in the market. Major vendors include Amazon.com, Barnes & Noble Inc., Rakuten Inc. and Sony Corporation.

For more information, visit IBISWorld’s E-Reader Devices procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of e-readers. E-readers or e-book readers are portable electronic devices used to read digital content such as digital magazines and e-books. Typically, e-readers have limited features but can come in black and white or color. They can also come with touch screen functionality. Primary distributors, wholesalers and retailers distribute e-readers. This report does not include tablet computers and smartphones.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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