Tablets may sound death knell for e-readers

E-readers like the Kindle will face very tough competition

Shipments of 3G tablets are expected to grow from 3.65 million this year to 50 million by 2014, according to projections from research firm Informa Telecoms and Media.

Multifunctional devices such as the upcoming Samsung Galaxy Tab combine the best features of smartphones and netbooks, and are likely to surpass sales of dedicated e-readers, according to Informa.

"We are seeing the same kind of interest in tablets now that we saw two years ago for e-readers," said David McQueen, principal analyst at Informa Telecoms & Media.

“While the iPad may not be as ideally suited to reading as a dedicated e-reader, many users find that it works well enough, in addition to its many other functions. It would be surprising to see people buying both an e-reader and tablet."

Vendors such as Amazon and Barnes & Noble have embarked on a strategy that involves slashing prices, but this will not help to grow the e-reader market in the long-term as tablet prices are also likely to fall.

Sales of 3G e-readers are tipped to peak at 14 million units in 2013, before falling by seven per cent in 2014 as competition from other devices increases, Informa said. However, McQueen envisaged sales of Wi-Fi-only e-readers to remain stable.

“E-reader manufacturers may add functionality to their devices, effectively turning them into tablets in the future but there should always be a market, it depends how manufacturers enter it,” he added.

According to Francisco Jeronimo, research manager for European mobile devices at IDC, e-readers are unlikely to become obsolete anytime soon as they have a low price point and extended battery life.

"Tablets will become popular as prices decrease and a number of models with different specifications enter the market," he said.

"Tablet manufacturers will try to push their products as e-readers, but they will remain expensive and a device such as the Amazon Kindle is suited to reading and is available for just over £100."