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Shipments of electronic book readers will skyrocket to 30 million units in 2013 and the devices will become a big opportunity for suppliers of various components, including processors, memory and other semiconductors, according to In-Stat market research firm.

“Rumors abound of new entrants to the e-book market, and the amount of digital content is only increasing. In-Stat believes that e-books represent a strong revenue opportunity for component suppliers, equipment manufacturers, and now wireless operators, alike,” says Stephanie Ethier, In-Stat analyst.

At present e-book shipments are taking off, with worldwide shipments expected to grow from almost 1 million units in 2008 to close to 30 million units in 2013, reports In-Stat. According to the research firm, the bill of materials (BOM) of a typical e-book will decrease by 23% between 2009 and 2013, as unit volume ramps up, which will catalyze further growth of shipments.

This rapid shipment growth will create new revenue streams for semiconductor companies in the industry since the semiconductor opportunity is expected to surpass $1 billion by 2013. For example, the processor opportunity within eBooks will approach $227 million by 2013. Still, it is natural that the display segment will represent the largest component opportunity, followed by the wireless module. Obviously, the consumption of DRAM, NAND, battery and other components will grow as well. 

Most of the e-books on the market today use E-Ink display technology, but this does not rule out the potential for OLED or other display technologies in the future, believes In-Stat.

The analysts from the company claim that Amazon is emerging as the leader with its Kindle lineup, due to its content delivery service. Similar services are likely to drive the market in future as well.

“Amazon and Sprint are providing an easy-to-use, end-to-end content delivery solution for the consumer, which is essential for mass market adoption of an emerging technology,” added Ms. Ethier.

Tags: Amazon, Kindle


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