E-book industry ushered in a major reshuffle: Founder, Patriot will gradually withdraw (VC314)

Recently, the e-book industry has finally ushered in a major reshuffle. In May, many e-book manufacturers launched an unprecedented price war. In mid-July, Hanwang announced a huge loss in the first half of 2011. Immediately following the news that Patriot, Founder and other manufacturers will withdraw from the e-book hardware business. In Shenzhen, most small and medium e-book manufacturers have switched to tablet computers. Although abroad, Amazon has just announced that the sales of e-books using Kindle as a carrier have exceeded that of traditional books, but domestic e-books have become the tasteless taste of "tasteless food, abandonment". Is the ebook over?

Hanwang, which has always been at the forefront of the industry, has a huge performance loss, which seems to mean that the nightmare of e-books has begun. At the beginning of May, Hanwang released the first quarter of 2011 results showing that Q1 had a net loss of 46.18 million yuan, and expected a loss of 90-98 million yuan in the first half of the year. A few days ago, this number was increased again to 165 to 175 million yuan. Based on this calculation, Hanwang suffered a loss of more than 100 million yuan in Q2, more than double that of Q1.

However, in the eyes of some industry insiders, Hanwang's loss expansion in Q2 is not surprising, because since May, major e-book manufacturers have launched an unprecedented price war. On May 13, the price of e-books under Hanwang dropped sharply, with a maximum drop of more than 40%. Afterwards, companies such as Patriot and Newman followed up, and Shanda lowered its popular book "Kingshu" from 999 yuan to 499 yuan, equivalent to half-price sales.

The drastic price reduction of the once noble coveted e-book is undoubtedly a good thing for consumers, but the market does not seem to appreciate it. In major stores in Huaqiangbei, e-books are hard to find, and the Hanwang counter in the once-in-a-lifetime market has also become more accessible, replaced by a variety of tablet computers.

The first file of Cyber ​​said that at the best time, dozens of e-books can be sold every day, and now they ca n’t be sold anymore. "E-books have too few functions, far less than tablets, but the price is about the same." Onda, Taipower, Newman and other brands of 7-inch tablets with Android systems have been priced at 400-800 yuan, and e-books are generally around 1,000 yuan until two months before the price is reduced.

Zhang Yi, Chief Analyst of AiMedia Consulting, believes that "most domestic e-book manufacturers mainly rely on hardware to make profits. The sharp price cuts are only exhaustive. Eventually, the entire industry will be in a desperate situation."

Although some manufacturers claim that the price reduction is to popularize the market and pave the way for content sales. However, Zhang Yi pointed out that "content consumption is far from forming in China, and the publishing industry is in a stage of resistance to e-reading, and copyright prices remain high. Even if consumers are willing to buy, manufacturers are currently unable to provide enough content. "

Now some well-known e-book manufacturers have begun to withdraw. Recently, it has been reported that both Founder and Patriot have involuntarily divested their e-book hardware business and are currently in the stage of clearing inventory. In Shenzhen, from different sources, many manufacturers who entered the field of e-books early also began to switch to tablet computers. A person in charge of a manufacturer who did not wish to be named revealed, "In 2010, Hanwang and other large manufacturers were aggressively advertising, heating up the entire market. The original manufacturers of netbooks and mobile phones cut into the trend and took advantage of the price to gain some sweetness. . Now basically has withdrawn from this market. "

In fact, even the e-book pioneer and Amazon, the most successful seller, now plans to launch tablet products in October 2011. Shenzhen Electronics Industry Analyst Wang Bin said that compared with domestic manufacturers, Amazon already has a very complete content platform. The tablet is pushed to make this platform a better carrier. After all, e-books have been difficult to meet the growing content Demand.

The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting.

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