With the Apple iPad arriving in less than two weeks, Sony is making things interesting in the e-reader market by temporarily cutting the price of its Pocket Edition device by $30. The low-end Sony Reader drops to $170 through April 3, which not coincidentally is the same weekend the iPad starts to ship. Prices on Sony’s more advanced e-readers, including the $300 Touch Edition and the $400 Daily Edition remain the same.
The $50 E-Reader?
Analysts assert that hardware prices must fall if e-readers are to gain mass-market acceptance. A Forrester Research study last year predicted that e-readers could eventually cost as little as $50, a loss-leader strategy that might work if the industry adopts a subscription model similar to one used by wireless carriers and mobile phone manufacturers. In the Forrester scenario, however, newspaper and magazine publishers, still searching for a profitable 21st-century business model, would subsidize the e-reader hardware in exchange for a long-term user subscription.
The Sony Reader price cut may also signal the start of segmentation in the e-reader market. At the high end, tablets such as the iPad and HP Slate will likely appeal to consumers who want a multifunction device, while the traditional (and relatively cheap) e-readers could appeal to e-bookworms who want a single-use device.
Contact Jeff Bertolucci via Twitter (@jbertolucci) or at jbertolucci.blogspot.com.