E-reader market worth $1billion by 2011?

The opportunity for semiconductor suppliers could exceed $1billion by 2011 according to research from In-Stats. The company estimates that this could be the most successful quarter for e-reader shipments so far, with shipments expected to rise from 12million units by the end of this year, to 35m in 2014.

"The e-reader creates new opportunities for microprocessor and memory vendors," says Stephanie Ethier, pictured, senior analyst. "The processor ASP will be the most resilient over the forecast period, only declining 18% from 2009 to 2014. Despite significant increases in nand flash densities, the dollar value of flash declines 60% over the same period." According to In-Stats, the selling price of the e-reader will fall from the current average of $200, to $99 before the Christmas holiday period. Shipment of tablet units is expected to reach approximately 58m by 2014.