E-readers - Page 5

Amazon announced a new Kindle e-reader today, the Kindle Paperwhite. This is pretty much the same e-reader as the Kindle Touch (which is no longer available), but it's got a new E Ink panel with built-in light, 25% improved contrast and a higher resolution (1024x768). This is quite an improvement over Pearl E Ink panels, we do not know yet what's the name of the E Ink panel itself yet.

The new Kindle will ship on October 1st 2012. The Wi-Fi model costs $139 (or $119 with ads) and the 3G model costs $199 (or $179 with ads). Amazon also reduced the price of the non-touch Kindle 2011 to $69 with ads (and $89 without).

E Ink said it expects its second half revenues to grow significantly from the first half - not just because of season factors - they expect new e-reader products in north america to re-ignite the e-reader market. E Ink also revealed that Rakuten (a Japanese e-commerce and internet company that owns Kobo) sold 100,000 e-readers in Japan since the launch last month.

E Ink plans to focus on non e-reader applications in the future to improve profitability. They expect demand for e-tags for convenience stores and supermarkets to "explode" next year.

E Ink has bought AUO's shares (82.7%) in Sipix Technology (STI) - the maker of micro?cup technology based electrophoretic e-paper displays. E Ink also intends to buy the remaining STI shares. The whole deal is worth about NT$1.5 billion (about $50 million USD) and will should close during Q4 2012.

Flexible solar Sipix prototype

Sipix's technology is pretty similar to E Ink's. It's not clear whether E Ink intends to continue producing Sipix displays or whether they bought them just for the IP and to remove a competitor. Sipix has been used in some e-readers (for example the Cybook Orizon), and apparently has some advantages over E Ink in the touch technology and refresh rate. E Ink is of course the clear e-paper e-reader leader with over 90% market share.

Plastic Logic announced that they decided to quit the e-reader market, and will not produce new devices. The company will use its plastic-based flexible e-paper (E Ink) displays in other applications. The company does want to find e-reader partners and will license the technology, and will "actively develop licensing and technology partnerships to exploit its e-reader related capabilities in terms of rugged, plastic displays as well as driver and viewing optimization software.”

Back in March we reported about LG Display's upcoming XGA (1024x768) flexible plastic-based E Ink panels. Now we hear that Wexler is that ODM, and the upcoming reader will be called the Flex One. And as was expected, the device itself isn't flexible or bendable: but however it is very durable, thin and light.

E Ink Holdings posted their financial results for 2011 - with $220 million in net profit, up 59% compared to 2010. Gross margin in 4Q dropped compared to last quarter as the company saw a rise in FFS panel shipments (mostly to the Kindle fire probably) - which carry a lower margin compared to EPD products.

Flexible E Ink (LG Display)

EIH's Chairman, Scott Lu said that the company isn't ramping up its Triton color E Ink product (this is probably in response to the color Kindle rumor). The company is working on a next-gen color E Ink display and it is expected by 4Q 2012. E Ink also reveals that it will release flexible plastic-based E-Ink displays in 3Q or 4Q of 2012.

There are reports that E Ink signed a deal to supply Triton (color) E Ink panels to Amazon. These are 6" panels, that Amazon will integrate into a touch enabled e-reader. Shipments will soon start (in March) and will reach over 6 million monthly units.

Color E Ink prototype

E Ink Holdings published their January financial results, and the revenue was about $48 million - which is a 63% drop compared to last year (and 11% drop compared to December). Despite this the company is still expected to post revenues of over NT$40 billion in 2012 - a 5% increase over 2011.

Some say that this marks the "end of the e-reader" - with tablets clearly winning the race. Some analysts are suggesting that Amazon will sell less Kindle e-readers in 2012 then was expected, but more Kindle Fires. This is an interesting debate. Most people agree that a dedicated e-paper reader is far better as a reading device but tablets are obviously much more versatile.

Kyobo (a leading Korean book retailer) launched its first e-reader today - and it uses a color Mirasol display - a capacitive touch 5.7" 1024x768 panel with Qualcomm's front-light LED technology that can illuminate the display. Other features include a 1Ghz processor, Android v2.3 and Wi-Fi. The e-reader is now shipping in Korea for around $300.

iSupply performed a teardown analysis on the Kindle 2011, and according to them the 6" E Ink Pearl display costs $30.5. This is the most expensive component on the Kindle - which costs $84 on the whole (BOM and assembly). This means that Amazon is actually losing $5 on each ad-supported device sold - which cost $79