E-Readers May Become Gadgets Of The Past: Report

By Sumit Passary | Dec 17, 2012 07:18 PM EST

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E-Readers' popularity has started to decrease at a rapid rate as users tend to lean more towards a tablet. Shipment of e-readers is expected to decrease by over 35 percent in 2012 when compared to 2011, which may make the e-readers a gadget of the past.

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An IHS iSuppli Consumer Electronics report says that shipment of e-readers will fall from 23.2 million units in 2011 to 14.9 million units in 2012, which is a whopping 36 percent drop. Furthermore, e-readers shipments is expected to fall to 10.9 million units in 2013 which will be a 27 percent decline from 2012.

The report also suggests that by 2016, the e-reader market will amount to just 7.1 million units losing more than two-thirds of its market when compared to the sales in 2011.

The shipment of e-readers grew from 1.0 million to 10.1 million from 2008 to 2010 which is ten times in just two years. But the demand of e-readers was short lived as multifunctional tablets, which offered immense functions when compared to e-readers, appealed more to the customers.

An array of tablets is on offer from various tech companies and Apple leads the pack with its iPads. The recently-launched 7.9-inch iPad mini is flying off the shelves as the company struggle to meet customer demands.

The iSuppli report indicates that tablet shipments will climb up as high as 120 million units in 2012 and up to 340 million units expected by 2016.

The decrease in prices of 7-inch tablets is also a factor for the downfall of e-readers. Google's Nexus 7 is available for just over $150. Users can take advantage of reading, surfing the internet, playing games, watching movies, et al on the tablet.

"To try to maintain its market, ebook readers are likely to continue to sell at cost or even less in the future. Industry rumors speculate the Txtr Beagle reader, an ultra-low-cost model with a 5-inch screen, potentially selling for as little as $13 alongside operator subsidies in 2013-less than the cost of the display alone. Such extremely low pricing may serve to prolong the life of the ebook reader market for a little while," reported iSuppli.

If you own an e-reader have you ever thought of replacing it with a tablet?

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