SAN FRANCISCO—The e-reader market is projected to represent a $1 billion opportunity for semiconductor suppliers next year, according to a forecast by market research firm In-Stat.
Shipments of e-readers from suppliers such as Amazon.com Inc., Barnes & Noble Inc. and Sony Corp. are projected steadily from 12 million units in 2010 to 35 million units in 2014, according to In-Stat (Scottsdale, Ariz.).
"The e-reader creates new opportunities for microprocessor and memory vendors,” says Stephanie Ethier, as In-Stat senior analyst, in a statement. "The processor ASP will be the most resilient over the forecast period, only declining 18 percent from 2009 to 2014."
Despite significant increases in NAND flash densities, the dollar value of flash content in e-readers is expecting to declines 60 percent over the same period, according to Ethier.
In-Stat predicts that e-reader price points will continue to fall over the remainder of 2010, with a $99 model likely available in time for the holiday season. Overall, the average selling price for e-readers in 2010 will be $200, according to the firm.
While In-Stat projects that e-reader shipments will grow to 35 million units in 2014, the firm expects that tablet shipments will reach roughly 58 million by 2014.