Digitimes are reporting:
Shipments for the 9.7-inch Kindle DX tripled when Amazon reduced the prices for the model to US$379 from the previous US$489, Liu noted, adding that worldwide e-book reader shipments are expected to exceed the previous forecast of 10 million units in 2010 due to vendors' price cuts.
Liu indicated that with the prices for e-book readers dropping significantly, players who only produce e-reading devices with no content support are coming under threats of being forced out of the market by the first-tier players such as Amazon and Barnes & Noble who will continue to dominate the market.
While some market observers have speculated that E Ink Holding's profitability may be affected by vendors' pricing campaigns, Liu said that his company and its clients already set the EPD prices at the beginning of 2010 with E Ink promising discounts when order volumes reach the agreed amounts.
E Ink added that clients are now able to run pricing campaigns because their EPD orders have already reached the agreed amounts, allowing them to have discounted prices, Liu said, adding that his company is happy to offer the discounts to help stimulate growth of the e-reading market.
This piece of news falls into the "Well, duh" category. We just got into a price war and Amazon announced 3 new ereaders. How could sales not go up? And how could the price war not drive the smaller competitors out of the market? *head scratch*