Is China facing an e-reader price war?

The following press release came across my desk this morning:

While iPad of Apple Inc. (Nasdaq: AAPL | PowerRating) is competing with Kindle of Inc. (Nasdaq: AMZN | PowerRating) in the oversea market, the tablet computer triggers a markdown of e-book readers in the Chinese market. As a result, the stock price of Hanwang Technology Co., Ltd. (SZSE: 002362) slipped.

Technology portal discloses that mainstream e-book reader brands such as Hanwang and Founder Technology Group Corporation (SHSE: 600601) have all downgraded their prices by about 20%.

Not only iPad, but also domestic tablet computers like FlyTouch of Gome Electrical Appliances Holding Ltd. (SEHK: 0493) challenge the robust growing e-book market. With the same size as an e-book reader, iPad is tapping a burgeoning market between laptops and smart phones. Apple reveals that iPad users download 250,000 e-books one day from the company's online store.

The price drop could be due to tablet competition, yes, but it could also have been caused by the crowded ereader market. Either cause is possible.

About Nate Hoffelder (11796 Articles)
Nate Hoffelder is the founder and editor of The Digital Reader:"I've been into reading ebooks since forever, but I only got my first ereader in July 2007. Everything quickly spiraled out of control from there. Before I started this blog in January 2010 I covered ebooks, ebook readers, and digital publishing for about 2 years as a part of MobileRead Forums. It's a great community, and being a member is a joy. But I thought I could make something out of how I covered the news for MobileRead, so I started this blog."

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