New E-Reader Set to Rock Digital Book Market - Page 2

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In July, Amazon cut the price of the Kindle 2 by $60 to $299 from $359, though the large-screen DX version costs $489. Proving, however, that vendors aren't backing off from premium models, in addition to a low-cost device Asus may also release a more expensive, color-screen model sporting a hinged spine that opens like a book.

As the e-reader market becomes more crowded with models at different price points and with varying feature sets, cost could be a big factor in whether or not the iRex will be successful.

The price is right?

"What we found was that the price points for how most consumers value eReaders is shockingly low -- for most segments, between $50 and $99. Of the 181 million U.S. consumers who are online, 14 percent, or 25 million consumers, say that eReaders priced at $199 or higher are expensive but they'd still consider them for purchase at that price point," Sarah Rotman Epps, e-reader analyst at Forrester, wrote in a blog post highlighting the research firm's latest data.

She goes on to say, however, that the iRex could surpass the competition if it can overcome having a brand unfamiliar to U.S. consumers.

"Perhaps the best feature is its ability to support native fonts and more flexible formatting, which will make newspapers and magazines look a lot better than they do on the Kindle DX. Will it sell? Under the iRex brand, which is unknown to consumers, iRex will struggle to sell this device next to the better-known Sony products," writes Epps.

"But -- in the long term, iRex is in a better position than any other company currently in the eReader mix to have a consumer-enterprise crossover product, like Research-In-Motion's Blackberry, or Apple's iPhone. Their experience in Europe puts them leagues ahead of other companies who'd like to get a piece of the as-yet-untapped enterprise eReader market."

Analyst Tim Bajarin agrees that the iRex device is pricey, but isn't counting it out.

"The iRex will be a competitive product but its price could be an issue given the new lower price of the Kindle and Sony eReaders," Bajarin, president of Creative Strategies, told InternetNews.com.

"It would have an edge since it would work overseas, and the connection to B&N as well as NewspaperDirect is a plus. But its higher price will be an issue for many people, although its touch screen could be a reason people might be willing to pay more for it."