The continuing maturity of the EBR (e-Book Reader) device market is leading to some interesting new products of late. One is from a Boca Raton, FL based OEM / ODM provider called Paradigm Shift (PS). Their product didn’t turn to the traditional 6-inch electrophoretic (EPH) display from E Ink for its display in this new $129.95 EBR device. They instead use a modified, low cost 5-inch color TFT LCD the company believes delivers a "good enough" b/w image to allow for relaxed-eye text reading, plus provides all the benefits of LCDs (color video display speeds etc.), at price points that could go as low as sub-$99 (even sub-$69) as early as Christmas 2010.

Steve Sechrist
Senior Analyst and Editor

One source based in China and the US, who asked to remain anonymous for now, recently told Insight Media to expect the market to be flooded with LCD-based EBRs with up to ten different models, some of which will include the open source Android operating system (and access to all the new Android Apps), plus Adobe DRM technology to unlock the digital content.

To get there, ODM’s will use low cost, small TFT LCDs manufactured in very high quantities (compared to EPH display quantities) and enhanced viewing films to reduce the eye strain in b/w reading mode. "This is the only way to get the prices down to those levels…" our source told us.

The proposed Android-based device expands the boundaries of traditional EBRs much like the Apple iPad, making use of the LCD’s vivid color and video display speed as an MID (mobile internet device) that just happens to be a "good enough" EBR. But it’s that distinction-"making the display look like e-Paper" that distinguishes the EPH- from the LCD-based displays, according to a recent conversation with E Ink’s VP and resident display guru, Sriram Peruvemba. He told us that ultimately the discussion is about use and functionality. "You can use a cell phone as an EBR device if you want. But from a hardware perspective, (that is "non-content") the primary value of a dedicated EBR is in the display." By that we surmise, the e-Paper look and feel.

For the heavy lifting, i.e., textbook readers in education, "good enough" LCD displays may just not cut it. Peruvemba also made the point that EBRs could be selling at sub $100 today. Already retail prices have reached the $150 range (B&N new Kobo Reader) and using a subscription-based model or subsidized HW model, (give away the printer /make money on the ink) OEMs could sell devices for sub-$100-and conceivably even give away EPH-based devices free like cell phones in the wireless market.

So get ready as the EBR market is poised to morph into something along the lines of netbooks (vs. laptops) with new, low cost LCD-based MID tablet readers selling at these very low price points by Christmas. And like the netbooks that came before, the impact of low cost products in this space is likely to place downward price pressure on the entrenched technology, while significantly growing market size at the same time. We’ll see. - Steve Sechrist

Ed. Note: Look for an expanded version of this story in our May issue of Mobile Display Report due May-15.