Amazon is gearing up to revolutionize its Kindle e-reader range with the introduction of ACeP (Advanced Color ePaper) technology next year, TechNews reported. This has been revealed by analyst Ming-Chi Kuo of Tianfeng International Securities, which means it isn’t something that you can shrug off easily. Kuo is known to be accurate with his predictions and commands much respect in the tech world.
Kuo anticipates that Amazon will unveil 6-inch and 10-inch color Kindle e-readers equipped with E Ink ACeP technology. The new range of color e-readers is expected to be ready by 2025. Unlike existing E Ink Kaleido displays, ACeP achieves stunning full-color representation without color filters. This allows for enhanced saturation and contrast. Further, with ACeP employing Oxide backplanes, this ensures superior responsiveness.
That said, with all the cutting-edge features that ACeP display tech stands for, it comes at a price premium compared to E Ink Kaleido or monochrome e-paper. This points to the ACeP display-enabled Kindle devices being significantly costly compared to the current models, with Kuo projecting 40 percent to 60 percent higher prices than monochrome e-paper.
As it is, the global market for color e-readers is poised for significant growth in 2024, constituting 8 percent to 10 percent of the total e-reader market. This surge is fueled by upcoming color models from Rakuten Kobo and reMarkable, with production expected to commence in the first and third quarters. Notably, reMarkable plans to adopt ACeP, potentially for a 12-inch model, further motivating Amazon’s aggressive foray into color e-readers in 2025.
This anticipated growth in color e-reader shipments from 2024 to 2025 underscores the pivotal role of enhanced reading experiences in driving structural changes in the market. This trend benefits content publishers by boosting e-book sales. It contributes to the sustained expansion of the global e-reader market, projected to reach 15 to 20 million units annually by 2025.
Similarly, the electronic shelf label (ESL) market is also transforming due to increased demand from Walmart. Initially planning to phase out tricolor ESL production by 2024, E Ink may expedite this transition following Walmart’s adoption of quad-color ESL. This shift, expected to commence in the second half of 2024, presents E Ink with an opportunity to promote quad-color ESL to other clients. Although the unit price of quad-color ESL is estimated to be approximately 10 percent higher than that of tricolor ESL, its enhanced specifications justify the investment.
Despite challenges highlighted during its 2023 earnings call regarding the transition to color technology, E Ink remains optimistic about applying electronic paper across various sectors, including e-readers, ESL, digital signage, and more. With the completion of ESL inventory digestion projected by the first quarter of 2024, E Ink is poised to capitalize on emerging opportunities in the market.
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