While consumer electronics sales hit peaks and valleys, when a manufacturer like E Ink Holdings reports a significant loss, it’s time to stop and pay attention. The display manufacturer reported a 46% decline in sales over the past year, with a net loss totalling $33.6 million to boot.
While reporting a loss isn’t all doom and gloom for a company, this is the largest decline for E Ink in four years, which may be a general signal that e-readers aren’t going to perform as well in the near future. In fact, they anticipate e-reader sales to stay around 10 to 15 million this year, which is a major difference when compared to the sales increases reported in previous years.
E Ink displays make up 70 percent of the company’s revenue, and with e-reader users being swayed by the siren song of tablets more and more, it is only natural that sales might decline over time.
Still, E Ink Holdings is confident that sales will turn around during the holiday season, but with comparably sized tablets coming in at similar price points, it is unlikely that the traditional e-reader will see the market share it saw in the past few years.