Shake-Out Rattling E-Reader Market Amid Price Moves

A shake-out is rattling the e-reader market as companies try to find their footing in a rapidly growing category, industry executives said.

Amazon and Barnes & Noble moves last week to cut Kindle and Nook e-reader prices below $200 appear partly to have caused Plastic Logic to postpone delivery of its Que e-reader that was due June 24, the executives said. Meanwhile, iRex Technologies filed for bankruptcy protection in the Netherlands and the company is “working on a solution,” Founder Alex Henzen told us. IRex launched sales in February of its DR800SG e-reader ($399), which featured an 8.1-inch electrophoretic display, on Bestbuy.com. But the chain has since dropped the device, a Best Buy spokeswoman said.

A Plastic Logic spokeswoman confirmed delivery of Plastic Logic’s device had been delay for a second time -- it was originally due in April -- and said a new shipment date hasn’t been set. The Microsoft Embedded CE-based Que was unveiled at CES in January (CED Jan 8 p3) featuring a 10.7-inch electrophoretic screen with 1280x960 resolution. It was to be available in 4 GB ($649) and 8 GB ($799) flash memory configurations. Barnes & Noble was expected to carry the product online and in its retail stores. Barnes & Noble officials weren’t available for comment.

"The market for e-readers is changing rapidly” and Plastic Logic “wants to make sure the product it delivers is the right one for its target business customers,” the company spokeswoman said. Plastic Logic, which is producing the displays at its Dresden, Germany plant, “continues to refine” the product “technology and features” and is “anxious to get in the marketplace as soon as possible,” she said.

In addition to introducing a new Wi-Fi-equipped Nook at $149, Barnes & Noble is expanding distribution through Best Buy, which is selling the Nook online and in its stores, a Best Buy spokeswoman said. Best Buy created an e-reader section, typically at the front of a store, to display the Nook and Sony devices, the spokeswoman said. The display is designed to let consumers try and compare the products, she said. Nook WiFi is available at Bestbuy.com and will be in stores by August, the spokeswoman said. Best Buy has been marketing the Nook3G ($199) since April, she said.