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'It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.'
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iPad and Other e-Readers Will Remain Niche Products Unless Prices Plummet

A study conducted in March - prior to the launch of Apple's groundbreaking iPad - reveals that tablet computers and electronic readers could become as ubiquitous as digital music players - but only if their prices fall dramatically!  The study by The Boston Consulting Group covered almost 13,000 internet users across fourteen nations, and concludes that consumers will pay for books, magazines and news on such devices but only at prices lower than many publishers' aspirations. It also found that  ...

[Estimated timeframe:2010 - 2015]

... twenty-eight percent of those polled claimed that they intended to purchase a tablet or e-reader within one year, while 49% said they would buy one within three years.

Boston Group's global media practice leader John Rose believes that declarations of an “intent to purchase” usually have to be discounted. He observed, however: “You can easily argue your way to 20-25 per cent penetration, which would make it a runaway success versus DVD players and CD players.”

Added Rose: “The survey suggests that e-readers and tablets are not a niche product for early adopters but could become the MP3 [digital music] players of this decade. Grandmothers will soon be carrying them around.”

Mass adoption of such devices, however, would depend on the price of single-function gizmos such as Amazon's Kindle or Sony Reader falling to $100-$150,

Moreover, the retail cost of such multipurpose devices as the iPad would need to plummet from $499 to $130-$200.

Two-thirds of respondents favoured devices that were capable of performing more than one function.
 

Factual data only is sourced from the original attributed article. The data is then enhanced by additional research and comment.

Email this article Source: FT.com
MT article URL: http://www.marketingtomorrow.com/article.aspx?id=5178



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