Although there’s some overlapping functionality between tablets and e-readers, it doesn’t seem to set up either device to cannibalize the other; at least not yet. Pew Research noted on Monday that ownership of each nearly doubled this holiday season, indicating that some consumers are content to focus solely on reading while others want a device that supplements digital content with apps, web access and email.
Pew points out that both Amazon and Barnes & Noble introduced new, low-cost tablets this past holiday season. These would fall into the “tablet” category even though both are e-reading devices at their core; running on Android opens up additional tablet-like features. As a result, these relatively inexpensive devices surely helped boost tablet sales during the holidays.
But this gain may have been offset by lower-cost e-ink digital reading devices. Again, Amazon and Barnes & Noble rolled out new e-readers to expand their product lines, with some prices starting as low as $ 79; far less than the $ 199 it costs for an Amazon Kindle Fire, for example.
As long as there’s a significant price difference between the two device types, I suspect there will be little, if any cannibalization. If Amazon were to further subsidize the Kindle Fire with some product ads throughout the tablet, however, that could have a significant impact. E-ink readers will always have dedicated fans, but a $ 149 Kindle Fire, for example, would give tablet sales a nice boost.
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