The dedicated e-reader market is shrinking and the companies heavily invested in this space are diminished from the boom period of 2011 and 2012. e Ink is the primary player in this sector, their screen technology can be found on the Kindle, Kobo, Nook and Sony readers. Chief Financial Executive Eddie Chen recently told investors that e Ink’s revenue is expected to plunge 10% on the next earnings call.
E Ink has been seeing a cumitive decline in sales as their primary customers get more heavily invested in tablets. This has warranted a restructuring of their business and North American operations moving to a singular building.
The company is still heavily invested in the e-paper space, with 80% of their revenue still deriving from Amazon, Barnes and Noble and Kobo. Taipei-based Horizon Securities analyst Stanley Hsu said “shipments of e-book devices reached a peak of 20 million units in 2012 and then fell to 16 million units last year.”
One of the ways e Ink intends on turning things around is via the red hot mobile phone industry.The company began shipping e-paper products to Russian smartphone vendor Yota Devices last quarter and is hooking up Onyx with their e-Paper Android phone.
e Ink continues to make most of their money from royalties, based on the sales performance of mainstream e-readers. They have also raised capital from new investors in Taiwan and even received an income tax refund.
Michael Kozlowski is the Editor in Chief of Good e-Reader. He has been writing about audiobooks and e-readers for the past ten years. His articles have been picked up by major and local news sources and websites such as the CNET, Engadget, Huffington Post and Verge.