As innovation and competition direct consumer traffic to tablets and smartphones, waning demand for e-readers will cause prices to decline over the three years to 2017
Los Angeles, CA (PRWEB) August 29, 2014
“E-reader devices have a buyer power score of 4.1 out of 5, indicating positive negotiating conditions for buyers,” according to IBISWorld business research analyst Cameron Roark. Recent technology trends have helped to create this largely favorable buying environment. Technological improvements have increased the number of viable substitutes in the market, such as tablet computers, which buyers can leverage in negotiations. However, several factors limit buyer power, including high market share concentration and low average supplier profitability.
Decreasing demand for e-readers can be explained by the increased availability of tablets. “Rapid technological advances have allowed tablets to be manufactured at prices comparable to e-readers while providing many additional features, such as access to apps and video,” Roark says. Consequently, suppliers of e-readers have had to drastically reduce prices to remain competitive with tablets. The adoption of tablets is expected to continue through 2017, driving the price of e-readers downward and benefiting buyers.
Narrow profit margins have limited suppliers' ability to offer discounts; buyers must instead seek discounts based upon volume or breadth of service. Furthermore, high market share concentration forces buyers to choose from a small number of primary e-reader distributors (including Barnes & Noble Inc., Best Buy Co. Inc., Amazon.com and Rakuten Inc.) and is exacerbated by the moderate 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. For more information, visit IBISWorld’s E-Reader Devices procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of e-readers. E-readers or eBook readers are portable electronic devices used to read digital content, such as eBooks and periodicals. E-readers are limited to reading eBooks, magazines and newspapers. E-readers differ from tablets in that they do not have access to applications, cameras, microphones or mobile games. Additionally, e-readers have a lower screen resolution, refresh rates and limited computing power. The lack of features allows e-readers to typically have a much longer battery life, more mobility and readability, all of which complement the function of e-readers. This report does not include tablets or smartphones.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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.