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The Amazon Kindle e-reader – and the whole e-reader market – is about to get a dramatic sales boost when the device goes on sale in AT&T stores around the US. The e-reader, which is by far the bestselling device in its category on the planet, is continuing its slow march into physical stores after initially building its user base on its own store online.

Rollout from next Monday

Starting next week Monday, 6 March 2011, all 2,200 AT&T retail stores in the US will be carrying the Amazon Kindle 3G. Nothing changes here – it costs the exact same $189 (about £116) it costs online and in other physical stores, and it will be identical to the other models currently on sale.

Who benefits how?

Amazon’s major benefit is that it has yet another outlet to reach its customer base, adding AT&T to Best Buy, Target and Staples as the other physical retail stores the devices are carried in. As if the insane exposure it has from its online platform alone isn’t sufficient, now retail stores all across the US will have the company’s devices on show.

AT&T benefits mostly because Amazon will pay the company for the data transfer used when Kindle users purchase books over their 3G connections. This is the primary reason why AT&T will not carry the non-3G Kindle e-reader. With a Business Week report suggesting AT&T’s windfall could be up to $4 monthly for each Amazon Kindle 3G on its network, the company would do well to sell these devices hard.

The e-reader marches on

The Amazon Kindle 3G and its non-3G counterpart remains the shining light in the e-reader marketplace. The device continues to perform exceptionally well, even after people speculated tablet PCs would erode their sales. As Amazon puts the digital reader in more people’s faces, other e-readers can only benefit, too.

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You know a market is exploding when you sell three times as many products around the world as you did the year prior. The ebooks (and e-reader) market are doing exactly that, with reports emerging saying worldwide ebook sales increased an insane 200%!

Those are big numbers

The figures, calculated by Futuresource Consulting, pegs the sales of ebooks around the world at over 90 million units purchased in 2010, reports Ebook Newser.

Fiona Hoy, who is a market analyst with Futuresource Consulting, said in a statement that: ‘This equates to a value of more $900 million and was largely attributable to growth in the US region, which represented more than 80 per cent of global revenues last year.’ Given we had previously reported that ebooks were on course to become a billion dollar business, Hoy’s $900 million doesn’t seem that far off.

US growth

The biggest driver of growth in the industry was the North America, where over 80 per cent of all ebook revenue was generated. Western Europe, the second largest market, represent 10 per cent of worldwide ebook sales, with the UK being the primary driver in that region.

Global adoption occurring, too

However, Hoy is quick to point out that e-readers and ebooks adoption is on the up around the world, even outside of the key markets, and these sales are driven by local ebook businesses springing up, in addition to the major players like the Amazon Kindles of the world. Come 2014, Hoy predicts ebook revenue generated in the US will only be 50 per cent of the market, with the rest of the globe sharing the remaining numbers.

Hoy also says that ‘Western Europe’s share of global ebook revenues will grow significantly, contributing in excess of $6 billion towards global revenue in 2014.’ The basic point is ebook sales are showing no signs of slowing, and e-reader sales will likely continue their rapid growth instep.

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Prior to the iPad launching, it was well documented that Apple executives were working around the clock behind the scenes to court book publishers to support what would become its iBooks platform. Back then already many said that the Apple tablet PC was the biggest threat to Amazon’s then unchallenged dominance at the top of the eReader mountain. While early on it seemed like Apple would get some share, with Amazon continuing to dominate, the market place has changed a little with Apple’s tablet gaining fast.

iPad doubles share of e-reader market

A recently released survey conducted by ChangeWave has found that the iPad has doubled its e-reader market share since August, to now be within 15 percentage points of the Amazon Kindle market share.

The US survey had 2,800 respondents, of which 32 per cent used the Apple tablet PC as their e-reader, while 47 per cent used their Amazon Kindle. This is a dramatic shift when compared to the last time ChangeWave conducted this survey back in August – back then 62 per cent of respondents said they were using their Kindle, while only 16 per cent were using the iPad as their e-reader.

Interestingly, the two companies’ collective US e-reader share was at 79 per cent during the August survey and 78 per cent in this survey, suggesting that Apple took all that market share directly from Amazon. Battle on!

This is not all bad news for Amazon

What this survey, however, is not fully able to appreciate is the number of people who are reading Amazon Kindle ebooks on their iPads by using the Kindle app. While Amazon would no doubt prefer readership on their Actual Kindle device wasn’t declining, if the platform is still proliferating on other devices, the online retailer still has a net gain, and will find itself in the enviable position of being a platform holder, and not just a manufacturer.

And, in many ways, it would be funny to see a key function Apple tablet PC somewhat beholden to another device.

What’s next?

The survey also interviewed folks who intended on purchasing an e-reader within the next three months, of which 42 per cent said they wanted the Apple tablet PC, while a mere 33 per cent indicated they’d go for the Kindle.

Nevertheless, what matters most is that between these two devices the overall ebooks and ebooks reader market will only further expand, benefiting the entire industry, as well as smaller players in the space.

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Struggling US book store chain Barnes & Noble hosted a special event to unveil its latest B&N Nook – a colour eBooks Reader. And while the chain thought it would set the e-readers market alight, it’s actually likely it has committed premature suicide in that space. Below is an explanation of why we think they’ve killed themselves in the space and how others can ensure they don’t make the exact same mistakes.

A colour e-reader is just a bad iPad

The problem with the new Android-powered B&N Nook Color is that Barnes & Noble essentially turned its back on the only thing keeping e-readers relevant in a post-iPad world – e-ink. E-ink is easier to read over long stretches of time, is very light on the battery, and works great in direct sunlight. In short, for pure reading, it’s superior to a tablet screen any day of the week.

When you add a colour screen into the mix, as the B&N Nook Color has done, with the ability to read magazines and a very basic build of Google Android as the OS, you no longer have an e-reader on your hands but rather a truly cheap tablet PC – and an awful one at that.

E-readers that have not committed suicide

If anything, this represents B&N’s hubris, arrogance, greed, or even ambivalence. Why this would work when the number one eBooks reader in the world by a country mile – the Amazon Kindle – has realised e-ink is the way to keep ploughing forward, is bemusing at best. Even the likes of Sony, who have a reasonable foothold in the eBooks reader market, have stuck to e-ink with their revised product range. The point, essentially, is, e-readers need to have the superior reading display, even if it is an inferior display in other areas, since this is the lifeblood of the platform.

Learn from this, manufacturers – but we don’t doubt you already have. And consumers, don’t be fooled by colour e-readers. If you want a digital device to read material on, stick to e-ink devices. The minute the device goes colour, it just becomes a poor man’s tablet. The B&N Nook Color is a poor man’s tablet.

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The rise and rise of the e-reader is well documented, with Amazon virtually confirming a market that was fringe for the longest of times. Though the Amazon Kindle momentarily blew the competition out of the water, it has also paved way for their success, since it confirmed a market Sony and others dabbled in for some time. For book lovers, this is a good thing. Below are three reasons you should get an eBooks Reader right now.

Reason 1: You love reading and value retention

This is a no-brainer, of course, but if you love reading, and read a high-volume of material, an e-reader may be viable. What makes an eBooks reader a must-buy though, is if you appreciate improved retention of material read. A recent study found people who read using e-readers read slower than those reading books, but also read a higher volume of material. Slower reading equals better retention, and higher volume of reading is good for obvious reasons.

Reason 2: It’s actually the economical way to read

Assuming Reason 1 holds true for you, reading eBooks is actually cheaper than reading paperback books. At $10 (£6,50) and less per new title and with the many classics that are freely available, your total expenditure on books will plummet once you cross a certain threshold of titles consumed. Everybody loves saving money right?

Reason 3: It’s environmentally conscious

We all want to do our part for the earth and, if not that, we want to limit how much damage we do to the earth. That’s where eBook readers come in. Consuming texts digitally is paper not wasted, which equates to trees not chopped down. Granted on your own, as one tends to think, the difference you make is miniscule, but imagine if reading digitally became mass market! A lot of trees would be saved from unnatural chopping, and though the waste from manufacturing the e-readers cannot be discounted completely, the withered Amazon will forever be in your debt.

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With the Amazon Kindle 3 finally retailing in the UK, as well as the many other brilliant tablet PCs joining the market, many people have been asking us whether they should buy an eBook reader. This questionnaire looks to take the mystery out of the purchasing process, with three simple questions to point you in the right direction.

Question 1: Do you read a lot?

This first question may sound snarky, but really, it’s important. With good eBooks readers costing north of £100, you better be reading a considerable volume of content to offset the price tag. Do the maths real quick – a best-seller costs in around £15, meaning for the price of the e-reader alone you could have bought 7 books. Now add the price of each digital title, you realise that it’s only cost conscious if you actually pour through a lot of books annually. If you do, buying an e-reader is not only more cost conscious, it’s also practical since they’re so much easier to carry around.

Question 2: Have you considered a tablet computer?

The great tablet vs. e-reader debate is in full swing, with advocates of both slugging it out, while those of us who know the benefits of each simply purchase both and enjoy what they’re good at. At present, pound for pound, an Amazon Kindle, as well as the myriad of other e-readers, is notably better than the iPad for reading content. But, the iPad can do so much more. And that price discrepancy is favourable if you’re on a budget, but if you can afford Apple’s device, the decision becomes so much more challenging.

For our money, reading on a tablet PC isn’t as pleasurable as it is on an e-reader, and if readings all you’re going to be doing, buying an e-reader makes so much more sense.

Question 3: Do you travel a lot?

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E-readers are particularly brilliant for those of us who enjoy reading, but are rarely home due to an occupation that keeps us on the road. If you’re one of these people, carrying five books on a round-a-bout trip is impractical. An e-reader, mercifully, solves this problem. What’s particularly brilliant about eBooks readers is their impossibly long battery life – lasting close to a month with no need for a charge. This way, not only do you negate the carriage problem by buying an e-reader, you also don’t have the concern of needing to constantly recharge your device – unlike a tablet PC (see question 2).

Do it, or don’t

In this case, if you answered affirmatively to question 1 and question 2, an e-reader may be a wise purchase. If you also answered affirmatively to question 3, an e-reader is a must. However, and this is critical, if you answered no to question one, regardless of what you answered to questions 2 and 3, we recommend you steer clear of the eBook readers, since your money will be better spent elsewhere.

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This is the question every gadget lover around the world is asking themselves: ‘Is an iPad – or any other tablet for that matter – for me?’ The answer isn’t a cut-and-dry no and we run through a few considerations as a checklist on whether you should consider getting the iPad or not.

Consideration one: what are your expectations?

The very first thing you must think about when considering buying a tablet PC is what you’re expecting it to do. If you’re hoping it will completely replace your laptop as a productivity tool, you’re likely to be greatly disappointed. While it does do basic productivity functions like word processing and emails, it isn’t built for that.

Consideration two: what is the iPad built for, then?

Of course you’re wondering what the iPad is built for, if it isn’t an out and out productivity tool. Many have suggesting if you’re buying a tablet PC, you’re purchasing it to be a media consumption device. This, we believe, is a great insult to the potential of the iPad and the incoming generation of tablets. How so, you ask?

Well, though we agree it’s a great media consumption device, we believe – and by no means is this term official – that it makes for a fantastic experience augmentation device. Simply because of how different its input device is, applications built from the ground up with this input as a central consideration are going to revolutionise computing and how we interact with the world, by augmenting the experience we’re already having.

Consideration three: what it could replace

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The next thing you should consider is which device buying a tablet PC could substitute for. The e-reader substitution is well chronicled. The netbook substitution is noted, too. The handheld video games platform substitution is one you should think carefully about because it is legitimate, too. We’ve written about how it could replace musical input devices, too. And perhaps this is the iPad’s greatest strength – with the bustling app store, and developers fast coming to grips with how to build experiences for the platform, it won’t be long before we see an explosion in the creativity of functions built with just the tablet PC in mind.

So, is an iPad for you?

We’d be loath to discourage anyone from picking up a new gadget, so we suggest this: if you have an extra £50 or so to spare, buy an iPad and give it a bang. If you don’t like it, put it up for sale in a week or two on an online classifieds site for £50 less than what you paid for it. At least you will have gotten to try it out, as opposed to just wondering if it is for you or not.

Photo: Amazon

So much for claims that the stand-alone ebook reader is on deathwatch, with worldwide shipments of the e-reader exceeding 740,000. The Barnes & Noble Nook leads in numbers with the Amazon Kindle trailing in second.

Barnes & Noble’s

Before confusing what these ‘shipments’ represent, it is important to note that Digitimes Research isn’t talking about sales from retailers to customers, but rather from suppliers to retailers. Of the 740,000, Barnes & Noble shipped 37 per cent while the Amazon Kindle shipments accounting for only 16 per cent, according to the research firm. This figure does not include the iPad.

The swell in B&N Nook sales is as a result of the massive retail chain Barnes & Noble has, being North America’s largest books store chain, coupled with a heavy marketing push behind the device. The reason for the seeming lack in Amazon Kindle numbers is, according to Digitimes Research, in line with expectations that Amazon is reducing inventory in anticipation of a newer Kindle device due sometime in July or August.

Downward pressure on prices

Photo: Amazon

In related news, Barnes & Noble has dropped the price of its B&N Nook e-reader in the US, while also introducing a new cheaper model. The price of the e-reader with wi-fi and 3G (the original Nook) is now $199 (about £135), a $60 drop from its original price tag of $259 (about £212). The new model, which drops 3G for wi-fi only support, costs $150, radically undercutting the price of most ebook reader devices on the market at present.

This aggressive pricing regime may be the first step towards what some have called the ‘paperback’ ebook reader – a super cheap eBook to get the device into many people’s hands so as to use the platform as a content delivery service. Considering the B&N Nook is tethered to the B&N store, as is the Amazon Kindle to the Kindle store, this approach to pushing volume at tiny margins makes sense if you have engaged customers to always sell content to.

A shipment of 740,000 across the industry in over two months is certainly no run-away success, but it does prove a viable business model no less.

Photo: Apple

We wrote a story about Apple claiming iBooks accounted for 22 per cent of the eBooks market share during a recent Apple press conference. A reader took us to task for uneven reporting and, after internal discussion and further investigation, we’ve opted to revisit that post here.

Apple’s claim

Apple announced that in the two month period the iPad and its iBooks store was opened, Apple’s eBooks platform – which turns the tablet into a quasi e-reader – had sold 5 million titles to its 2 million plus iPad owners at an attach rate average 2.5 books per iPad owner. Apple claimed that this accounted for 22 per cent of the eBooks market.

Apple’s convenient omission

The truth, however, is that claim was, at best, conveniently incomplete or a gross oversight and, at worst, an out and out lie. Apple’s iBooks platform does account for 22 per cent of the eBooks market share of the five major publishers (and a few smaller ones) signed up with the company, which, of course, is not the whole market. This discounts one of the major publishers, Random House, and hundreds of midsize and smaller publishers, obviously depleting Apple’s total share of the iBooks market.

Some have speculated this depleted share of the whole market is only about 8-10%, but regardless of what the figure is, it is definitely less than the 22 per cent stated, making Apple’s claim wrong.

What stands, still

Photo: Apple

What does remain is the reality that Apple’s iBooks store, which didn’t even exist prior to April, is making major in-roads in the eBooks market, as well as threatening the existence of the stand alone e-reader. Amazon Kindle and the Kindle group should be concerned enough that their strategy moving forward should factor in the iPad’s impact on its business.

Thank you

So thank you to our readers for always taking us to task where they feel an issue or topic has not been explored fully. We have no biases here and simply want to report technology news as it is with some very reasoned judgements, too. We do think the iPad and the iBooks store is a major threat to the stand-alone e-reader and the Amazon Kindle platform in general. But Steve Jobs’ claim that it already accounts for 22 per cent of the whole market is plain wrong. Whether you want to put that down to human error (which we think it was) or believe he and his team were knowingly lying is up to you.

Photo: Amazon

Famous marketer and business thinker Seth Godin believes Amazon needs to release a ‘paperback’ Kindle e-reader, especially in the face of the growing competition from the iPad.

Price it to go

Godin’s thinking is Amazon needs to look at the current Amazon Kindle device as a hardback, and release a new, super cheap ‘paperback’ e-reader, too. This device, given a hypothetical price range of $50, would be priced to go and would get the Kindle lite, if you will, into millions of people’s hands.

He says, ‘the only way to get authors and publishers to embrace this device is to sell 20,000,000 of them’. The game, Godin argues, is to become the de facto platform for this form of reading, and adds that ‘the only way to create that footprint in the face of an iPad is to make it so cheap to buy’ that’s its irresistible.

Fragmented e-reader market

If not Amazon, perhaps Sony and its well-established e-reader can adopt this model. This paperback vs. hardback argument harks back to a topic we’ve covered quite a bit, recently, which questions the viability of the standalone ebooks reader as a device category moving forward. Some argue the ebooks reader will soon begin dying a very fast death, but pricing them to go may be a way to stabilise the market, particularly in the face of ‘now comparatively’ expensive tablet devices.

It’s no joke

Photo: Apple

At Apple’s recent Worldwide Developers Conference, where the company announced the iPhone 4, Steve Jobs snuck in a fascinating tidbit. Apple’s iBooks platform now accounts for 22 per cent of the ebooks market, having sold over 5 million eBooks in the 65 days since the iPad’s release. This figure should scare the Amazon Kindle team a bunch, since Apple has no doubt taken some share from the online mega retailer. How to stem the tide? A new colour touchscreen ebooks reader is an option, as is going the opposite direction by stripping features and pricing to go. Godin may have a point.