eReader market far from dead, will grow until 2015

According to new research from analysis firm IHS, eReader sales will begin to slow in four years as consumers move in earnest toward media tablets. Despite the already-low cost of some dedicated eBooks (Amazon recently dropped the original Kindle to $79), the company believes the iPad, Kindle Fire and Nook Tablet will eventually make life difficult for the single-use devices.

The gloomy prediction belies what was otherwise an amazing year for eReaders.

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IHS found that yearly global eReader shipments surpassed 27 million units in 2011 - a 108 percent increase over last year. The group said shipments will continue to grow over the next few years at a slower rate, finally sliding in 2015.

The eventual decline in consumer interest will push eReader makers to sweeten the pot for prospective buyers, said Vinita Jakhanwal, senior manager for small and medium displays, IHS.

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"Ebook readers have made great inroads among consumers following their introduction a few years ago, exemplified by the success of the Amazon Kindle and the Barnes & Noble Nook," explained Jakhanwal. "However, ebook readers' monochrome displays are being challenged today by the vibrant color displays of tablet devices like the iPad. Ebook readers can increase their appeal by adding color displays and by focusing on vertical markets like education."

Teachers could adopt eReaders for use in their curricula without fear of students downloading apps or browsing websites like they might with tablets, said Jakhanwal. The analyst added that a proper market for such educational applications hasn't been created just yet.

Last week, Amazon announced its Kindle line have sold one million units each week for three weeks straight, with the Kindle Fire tablet alone selling millions of units over the past three months.

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