As consumers settle into the e-reader market, new research indicates the Apple iPad is quickly gaining on the Kindle's dominance.
In August, analysts discovered Kindle controlled around 62% of the e-reader market, but that number has quickly shrunk to 47% as the year nears its end. During the same time, the iPad's marketshare jumped from 16% up to 32%, according to research.
The $139 Wi-Fi Amazon Kindle, which still leads the e-reader market, but still faces growing competition from Apple, Sony, Barnes & Noble, and other companies. Since its launch in 2007, the Kindle has enjoyed market dominance until 2010, when it became clear multiple companies wanted a piece of the growing e-book cash cow.
Both Apple and Amazon surprisingly opened up their products to new retailers, while both companies clearly respect one another. Walmart now sells the iPad and the Kindle is available in all Target stores -- and Best Buy has been able to snatch up customers by offering both products at its stores.
In July, Amazon slashed Kindle prices and said the decision helped increase Kindle demand -- even though it now has been proven it was done in response to continued pressure.
Starting in 2012, Forrester believes tablets -- largely led by the iPad -- will finally begin cannibalizing the netbook market. Furthermore, 27 million US million consumers are expected to purchase a tablet through May 2011, according to Forrester, with demand only expected to accelerate.
If e-readers want to compete against the iPad, then manufacturers will need to focus on a few specific things: display resolution and quality of screens, cost, DRM, and size of the device are just a few things that are constantly being improved. MyCE previously discussed why tablets won't be able to eliminate e-readers immediately.
