Amazon have absolutely cleaned up with their Kindle e-book reader, it's a hugely successful product for them. The Kindle currently accounts for 60% of all e-book reader sales in the USA and, with the Kindle 2.0 and the larger DX now on sale in over one hundred countries worldwide, the potential customer base for Amazon is enormous.
Currently, Amazon's major competition comes from Sony, who have a considerably smaller but nonetheless very respectable 35% share of the market. There are a whole raft of other manufacturers who, having seen the way that the e-book reader market has taken off, are now eager to secure a share of the profits for themselves. This year's Consumer Electronics Show in Las Vegas, for the first time ever, had a special section just for e-book readers. It's a very clear signal of the potential for growth that industry analysts are predicting in the sector.
However, what a lot of the "me too" e-book reader manufacturers seem to be forgetting is the fact that the hardware's technical features, whilst they are undeniably an important element in an e-book reader's success, form only one side of the equation. The success which Amazon has enjoyed with the Kindle reader up to now has been due to a number of different factors which are largely unrelated to its technical performance. The fact is that Amazon is in a very strong position which gives it a strong competitive advantage in the field of e-book reader sales in comparison to its competitors.
After all, Amazon is the world's largest book retailer - without exception. In the opinion of potential customers it therefore has a proven pedigree when it comes to books. It also has a very strong link with consumer electronics, as a merchant - but the association exists. In other words, Amazon is a trusted supplier of both books and electronic gadgets.
Any manufacturer who believes that they have an opportunity to take Amazon's lead position simply be releasing an e-book reader with a few extra technical features is, most likely, going to be sorely disappointed. Another big household name - well trusted and respected by consumers - is probably the only type of competition which Amazon have to worry about right now. Microsoft and Apple would be good examples - and both of them have readers in development and scheduled for release in the near future. Barnes and Noble are another possible player and Sony's established e-book reader pedigree means that they can't be discounted.
One thing's for sure, no small electronics manufacturer is going to break Amazon's stranglehold on the market. Tie ups, such as Plastic Logic's agreement with Barnes and Noble, who will provide the books for the Que reader, might throw up a few surprises. However, unless there is a truly surprising development in the offing, it looks like the Kindle reader really is set to become the iPod of books.
Currently, Amazon's major competition comes from Sony, who have a considerably smaller but nonetheless very respectable 35% share of the market. There are a whole raft of other manufacturers who, having seen the way that the e-book reader market has taken off, are now eager to secure a share of the profits for themselves. This year's Consumer Electronics Show in Las Vegas, for the first time ever, had a special section just for e-book readers. It's a very clear signal of the potential for growth that industry analysts are predicting in the sector.
However, what a lot of the "me too" e-book reader manufacturers seem to be forgetting is the fact that the hardware's technical features, whilst they are undeniably an important element in an e-book reader's success, form only one side of the equation. The success which Amazon has enjoyed with the Kindle reader up to now has been due to a number of different factors which are largely unrelated to its technical performance. The fact is that Amazon is in a very strong position which gives it a strong competitive advantage in the field of e-book reader sales in comparison to its competitors.
After all, Amazon is the world's largest book retailer - without exception. In the opinion of potential customers it therefore has a proven pedigree when it comes to books. It also has a very strong link with consumer electronics, as a merchant - but the association exists. In other words, Amazon is a trusted supplier of both books and electronic gadgets.
Any manufacturer who believes that they have an opportunity to take Amazon's lead position simply be releasing an e-book reader with a few extra technical features is, most likely, going to be sorely disappointed. Another big household name - well trusted and respected by consumers - is probably the only type of competition which Amazon have to worry about right now. Microsoft and Apple would be good examples - and both of them have readers in development and scheduled for release in the near future. Barnes and Noble are another possible player and Sony's established e-book reader pedigree means that they can't be discounted.
One thing's for sure, no small electronics manufacturer is going to break Amazon's stranglehold on the market. Tie ups, such as Plastic Logic's agreement with Barnes and Noble, who will provide the books for the Que reader, might throw up a few surprises. However, unless there is a truly surprising development in the offing, it looks like the Kindle reader really is set to become the iPod of books.
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