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Tablets, E-Reader Sales Surge Over Holidays


Tablets, E-Reader Sales Surge Over Holidays

By Margaret Rock | Tue Jan 24, 2012 4:10 pm

More Americans made the move to mobile entertainment devices over the holidays, signalling room for both tablets and e-readers in a changing entertainment landscape.

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The Pew Research reveals that only 10 percent of Americans owned either device in December, but those numbers jumped to 19 percent in January's after-holiday numbers. Both the tablet and the e-reader held their own, with 18 percent owning one or the other before the holiday shopping season, a number that surged to 29 percent in January.

Many expected to see a convergence of e-readers and tablets into a choice between one or the other as the market matures, but Pew's numbers underscore the U.S. population is turning to both devices to expand their digital gadgets.

The explosive growth of tablets is likely due to new offerings like Amazon's Kindle Fire and Barnes and Noble's Nook Tablet. Both devices honed in on a lower price point, under $250, and cater to first time tablet buyers, making it possible for many users to own both.

In addition, the Kindle Fire and the Nook's connection to an established magazine, book, and movie content source via the respective giants' familiar retail operations likely also convinced buyers they wouldn't be left with a gadget they couldn't fully utilize.

The lower price point and content connection generated greater consumer interest in the tablet market, and may have also paved the way, rather than diminished, growth of e-readers. Since tablets can also be used to read books, many thought their rise would eclipse e-reader growth, which are dedicated readers. That may be true down the road, but this holiday season, it wasn't the case.

For its part, Amazon's push of its Kindle Fire also meant a price cut of his hugely popular Kindle e-reader, which consumers were able to pick up for under $100, thanks to competitive pricing. Barnes & Noble's Nook Reader followed a similar strategy.

Readers considering a tentative move with a reading device likely took the plunge at this attractive price point, which roughly equals four hard-bound, printed books and provides a good primer into mobile entertainment, setting the stage for a possible tablet purchase down the road.

The trend towards tablets and e-readers as a entertainment staple may shed some light on Microsoft's latest Windows revenue decline, which was due in part to a drop in its core Windows division. Understanding that many of these tablet buyers chose the mobile device over a Windows notebook , Microsoft is focusing attention on its mobile initiatives with Windows 8 and other smaller netbook makers are following suit as well.

Since shortly after Apple's pioneering iPad debut almost two years ago, many speculated what it would take to pose a threat to the landmark device, which dominates the tablet market. Pew's survey reveals a lower price point, a content connection and maybe some holiday spirit was just the combination to give the competition a jump.

Still, this early momentum will surely be challenged, as both Android device makers and Apple haven't been sitting still and expect to launch new devices early this year, which will continue to transform this burgeoning market.


Posted In: Featured (39) | Reports (54) | Pew Research Center (4)


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