In-Stat: eReader market to grow to 35 million by 2014

Last year, standalone e-readers were one of the most popular devices in the consumer electronics world. Today, there is still buzz surrounding the e-reader market. However, the talk is of drastic price erosion, competition from the Apple iPad, and the overall sustainability of standalone e-reader shipment growth. Despite the potential impact that the tablet PC market may have on the standalone e-reader market, e-reader shipments will grow from 12 million units by the end of this year, to 35 million in 2014, according to In-Stat (www.in-stat.com).

"Tablet PC shipments are taking off, fueled in particular by the Apple iPad introduction. Yet, there will still be a revenue opportunity for e-reader suppliers and OEMs since tablet PCs and e-readers target different consumers," says Stephanie Ethier, Senior Analyst, In-Stat. "Standalone e-readers will address the needs of avid readers, to whom the reading experience is central. Tablets are better suited for consumers who prefer a stronger multimedia experience, and only light reading."

Recent research by In-Stat found the following:

* E-reader price points will continue to fall over the remainder of 2010, with a $99 model likely available in time for the holiday season.
* Tablet unit shipments will reach approximately 58 million in 2014.
* Among the several semiconductor devices used in e-readers, the processor ASP will be the most resilient over the forecast period, only declining 18% from 2009 to 2014. Despite significant increases in NAND Flash densities, the dollar value of Flash declines 60% over the same period.
* The semiconductor TAM for e-reader suppliers will exceed one billion dollars in 2011.