Are Kobo and Pocketbook the dark horses of 2011?

The Kindle and the Nook Color are both on a roll.

Kindle 3 and Kindle WiFi are clearly a step ahead of other dedicated eReaders – Unless B&N produces a stellar Nook 2 the majority of hard-core readers are going to end up as Kindle owners.

Nook Color has managed to create a unique niche for itself – the Reading Tablet. It’s going to win over a lot of casual readers. Unless iPad 2 is focused on reading, or a Kindle Reading Tablet materializes, Nook Color is going to dominate the ‘casual reader’ segment.

There are, however, two rather unlikely candidates that promise to give the Kindle and the Nook Color a run for their money – Kobo and Pocketbook.

Kobo as a threat to the Kindle Store, and to the Kindle

Kobo has a few things going for it -

  1. It fights on eReader price. It released the $150 Kobo eReader when other eReaders were around $200. Its Kobo Wireless eReader is currently on sale for $119 at Borders (thanks to a commenter at MobileRead for the tip).
  2. It fights on eBook price. Kobo’s ebook prices are close to prices in Kindle Store and Nook Store. Kobo Store always has offers and coupons.
  3. It has good backing. Borders is almost bankrupt, but it does provide exposure. The other backers are solid, solid companies.
  4. Kobo has extensive international reach. Its backers own a lot of retail stores around the world – which could all end up selling the Kobo Reader. Here’s a post on Kindle vs Kobo strategic advantages which details the ridiculous worldwide retail advantage Kobo has.
  5. It’s very, very persistent. Look at the rate at which it sends out coupons. Or the fact that it realized not having a wireless eReader was an issue, and released a new wireless version of its eReader.
  6. Its ebook store and its apps are well-designed.
  7. It sells in ePub, and it sells internationally. Combine that with the decent prices, and a lot of Nook and Sony Reader owners will choose it. Also, Kobo Reader supports ePub from any store using Adobe DRM.
  8. It’s leveraging existing brands – Borders in the US, Indigo in Canada, REDGroup in Australia, and so forth.

The primary reasons Kobo is a threat to Kindle are – It fights on price, it fights all over the world, it doesn’t give up, it’s been improving regularly, it has good backing, it sells ePub books.

Also, it isn’t afraid to compete. It isn’t ‘focusing on quality’ or ‘choosing international over US’. It’s going head to head with Kindle in reading apps, in eInk based eReaders, and in ebook stores.

Kobo is likelier to survive the eReader wars and thrive, than Sony.

PocketBook’s 2011 eReader as a Nook Color rival

Qualcomm has talked about how it has won a major client for its Mirasol color ePaper screens. Apparently, the client is so major that Qualcomm has invested $2 billion in production facilities. This plant is going to begin volume production in the beginning of 2012 – You have to wonder whether that’s when we’ll see a color Kindle 4.

Qualcomm also has a production joint venture with Foxlink which has been producing 5.7″ Mirasol displays in small numbers since April 2010.

This production source is probably what PocketBook will use for a color eReader it will show off at CES 2011, and which it promises to release in the third quarter of next year.

PocketBook’s Qualcomm Mirasol powered Color eReader might be just as big a threat to Nook Color as Kindle Tablet – unless Kindle Tablet uses Mirasol color ePaper.

A few things are worth pointing out -

  1. PocketBook’s color eReader would have much better battery life than Nook Color.
  2. The newness factor can’t be underestimated.
  3. We have no idea what the price would be – At $299, it’d be a big threat to Nook Color. At $400, it’d not be a threat at all.
  4. PocketBook has been making eReaders for quite a while. It’s one of the few smaller companies to not get decimated in 2010. In fact, it’s one of the few companies that has a large screen eReader.
  5. PocketBook has been trying hard – It has a variety of models, including a TFT color screen based 7″ eReader. It has a lot of good experience it can leverage when making its color eReader.
  6. It sells its eReaders in USA, Canada, Mexico, Australia, and Asia.
  7. It’s one of the few smaller eReader companies that makes good-looking eReaders (a few of its eReader models, not all).
  8. PocketBook is being aggressive about pricing – Its 5″ PocketBook 360 eReader is currently available for just $129.
  9. It supports ePub.
  10. It also supports a lot of formats which other eReaders don’t – such as FB2, CHM, and DJVU.

Perhaps the most impressive Pocket Book achievement is surviving 2010. If it can manage to release a Mirasol powered Color eReader by Q3, 2011, it’ll force Amazon and B&N to release color eReaders quicker than they otherwise would.

Kobo and PocketBook might play a bigger role than we realize

Kobo kicked off the race to $100 eReaders with the $150 Kobo Reader. It’s also doing a lot of price-cutting in eBooks. It’s going to continue to play a big role in eReaders in 2011. If it keeps improving at its current rate, it might replace Sony as a member of the Big 3 eReaders.

PocketBook might kick off the entire color eReader movement – If it manages to release a color eReader by Q3, 2011. If it brings Qualcomm’s Mirasol ePaper to market, it’ll force other eReader companies to scramble and release Color eReaders using Mirasol, eInk Triton, or another color ePaper technology. It would be remarkable if PocketBook turns out to be the company that drags eReaders into ‘The Promised Land of Color ePaper Screens’.

At a time when Kindle and Nook Color seem far ahead of the pack, it’s good to have a couple of dark horses competing in the eReader wars.

2 Responses

  1. Another two good points for kobobooks:

    + No geo-restrictions (at least from Mexico). Only Amazon does the same.
    + It allows downloading free books without registration (i.e. giving out credit card info).

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