E INK has announced that they intend to share profits with companies who order a fair quantity of Gallery 3 and Kaleido 3 colour e-paper. According to company chairman Johnson Lee, they plan to lower the prices of its new colour e-paper products, optimizing the high profitability garnered in 2022.
As for the way to share the benefits, Lee said E INK would sell its new colour e-paper solutions at prices lower than old models, thus lowering the company’s gross profit margin. By doing so, the incentive is that it can promote the use of e-paper products, drive replacement demand, or ramp up the penetration rate.
Meanwhile, Lee said that he is guardedly optimistic about the business prospects for 2023, and EIH will see its revenue continue to grow, albeit at a slower pace. Lee expects the company to garner a 10% revenue growth this year, with prospects to see double-digit growth.
However, Lee opined that E INK would remain cautious because some customers have decided to delay the launch of new e-book readers and e-paper notepads on concerns about market uncertainty.
EIH noted that the penetration rate of full-color e-book readers and e-notebooks in China reached 2% in 2022. The company expects the penetration rate to climb to 4% this year as more brands, such as Bigme Galy and PocketBook Viva, will utilize its Gallery 3 series color e-paper solutions to launch various new products. Other brands, including iFLYTEK, iReader, OnyxBoox, and TPV Technology, are expected to launch Gallery 3-based e-book readers in 2023.
Michael Kozlowski is the editor-in-chief at Good e-Reader and has written about audiobooks and e-readers for the past fifteen years. Newspapers and websites such as the CBC, CNET, Engadget, Huffington Post and the New York Times have picked up his articles. He Lives in Vancouver, British Columbia, Canada.