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Friday, July 10, 2009

Price Matters…

Originally written for eBookGuru - The Digital Magazine Devoted to eBooks

But it isn’t everything. Often usability trumps price. Most Linux based operating systems are free but witness the paucity of Linux desktops compared to Windows and Mac Systems. As of May 2009 Windows commands 88% of the market share for operating systems.

The same applies to eBook readers. The Cool-er eBook reader from Coolreader was the brainchild of Niel Jones who created the Cool-er when he tried to buy an out-of-stock Sony eReader. He immediately saw the market potential of eBooks and decided to capitalize on it.

While I applaud the effort to bring down the price of eBook readers, it only works if you are getting value for your money. While the $249 price of the Cool-er is less than the $299 price of the Kindle, the value isn’t quite as alluring as it was less than a week ago when the Kindle was $359. When you factor in the cost of books that you can use on the Cool-er and other intangibles such as user experience, the Cool-er isn’t really that much of a bargain. In fact Wired magazine states in a product review of the Cool-er that

The up front fee for the Kindle or Sony Reader is greater yes, but they more than make up for it in robust content, extra features, and superior hardware.

One thing is for certain - we are getting closer to the sub $200 price point that I referred to in an earlier post where sales of eReaders will start to really take off. In fact I expect that this will likely occur earlier than the mid 2011 timeframe predicted by Forrester Research. In less than a year and half, the price of the Kindle has dropped by 25% or $100 from it’s original starting price of $399. While I would be pleasantly surprised to see an eBook reader reach this price point before the end of 2009, I really don’t see it happening. If it does, then I would certainly caution potential purchasers to heed that ancient Latin saying caveat emptor or buyer beware.

posted by David at 12:30 pm  

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