Tablets will dominate e-reader market

Will e-readers find a significant market with the growing threat from tablet computers like the iPad?

In-Stat forecasts that tablet shipments will outpace e-reader shipments by the end of this year.

"Of the two, the tablet market is the stronger and more sustainable opportunity," said Stephanie Ethier, senior analyst at In-Stat. 

According to the analyst, e-readers still offer the truest reading experience and appeal most to readers

“But a broader market of consumers are demanding multimedia functionality, like web browsing, video and gaming, in their next mobile device,” said market analyst, In-Stat.

Another trend is that e-reader manufacturers will start selling tablet-like devices.

“Barnes & Noble already offers the Color Nook, which is often compared to a tablet, and Amazon, the leader in the e-reader space with its Kindle, will likely launch a tablet device later this year in an effort to compete head-to-head with the iPad," said Ethier.

A survey of 1,000 US end-users, In-Stat found that 38% own a tablet as compared to the 26% who own an e-reader. 

Tablets are the big attraction for semiconductor suppliers and the market for chips could reach $13.8bn in 2015, said In-Stat.

The chip market with e-reader suppliers is predicted to be just $1.6bn in 2015