Borders is in trouble. At least as far as the e-reader business is concerned. It did have the cheapest e-book reader on the market just a couple of months ago but Amazon turned the market upside down by introducing Kindle WiFi and putting it up for sale for $139. That move essentially took away all the advantages that those cheap e-readers such as Kobo had. The only move left for Borders was to drop its e-readers’ prices yet again, which happened on Tuesday. Kobo Reader and Libre are now up for grabs for $129 and $99 respectively. E-book reader prices may be coming down but not all will survive the future price wars.

We’re committed to making it as easy as possible for all Borders customers to enjoy eReading… As the demand for e-readers grows, we believe it is important to provide accessibility to a variety of devices. By reducing the price of our best-selling digital devices, we’re enabling even more Borders customers to purchase eReaders at a great value,

said Mike Edwards, Borders’ chief executive. If we move beyond the PR spin, it is very clear that Borders is struggling to keep up with Amazon but is not quite desperate to pull the nuclear option. Kobo Reader does have its fans but it’s only $10 cheaper than Kindle. Does if really offer a better bang for buck than Kindle?

Let’s make no mistake about it. Free (or something close to it) e-readers are the future. At this point, the top players in this market are not ready to be that aggressive. If the goal is to sell more e-books, giving e-readers for free is a good way to encourage more people to buy e-books (or sign them up for e-book subscription plans). Unfortunately, a lot of e-readers will die before we get there (e.g. Plastic Logic’s Que Reader). These recent price drops were expected but how low will the prices go before one of these top players pulls the plug on its e-reader? That remains to be seen.

The LCD-based e-readers do not get as much love as Kindle and other E-ink devices from e-book addicts. They may be harder to read books on (feel like reading on a laptop). But there are a few of them that are worth a serious look. Toshiba Libretto is one of those devices. It is a dual-screen tablet that runs Windows 7 and has a processor that packs a punch. It has plenty of RAM and is fully capable of handling those HD videos. What’s fun about this product is the fact that you can stretch your window across both displays or tackle two different windows at the same time.

Toshiba Libretto is more than just an e-book reader. Users can technically use this device to go through their PDF documents and keep up with their favorite blog feeds. It can be used to watch movies and play games as well. It’s an energy star device so its battery life should not be that bad (though it won’t come close to anything Kindle or other e-ink readers offer).

Toshiba Libretto may not have an E-ink display, but it does offer some unique features. Its price won’t impress traditional e-reader fans though. Toshiba Libretto is more of a mini laptop. If you do not have any issues reading books on your laptop, Toshiba Libretto could be the right e-reader for you.

Are you impressed with Toshiba Libretto?

Sony may have been a major player in the e-book reader market a few years ago, but it is tough to argue that the company is still relevant with Amazon, B&N, and Apple going hard at grabbing more market-share in this business. The Japanese company is not going to go away quietly. It has revamped its Pocket Edition, Touch Edition and Daily Edition models to give them a better chance to compete with other e-readers on the market. For starters, these e-readers will cost $179, $229 and $299 respectively. They will also have touch-screen displays, setting them apart from Kindle 3 and B&N Nook.

The screen used in these devices has been improved too (will have higher contrast). These upgrades are only evolutionary though. Even the new names suggest that fact (e.g. PRS-600 has been renamed to PRS-650). Sony’s new e-readers are more affordable, but they are still too expensive (only the best model offers WiFi).

Sony has always had trouble getting its strategy right in the e-reader market. The company had the chance to dominate this market early on, but it allowed Amazon (and now other companies) to pass it by. These new devices are certainly a decent move forward by Sony, but the prices are still too high. Considering that other e-reader makers are dropping their prices, it is tough to see how Sony can regain its market leadership position with its current e-reader strategy.

Would you consider buying these Sony Readers?

Not interested in buying Amazon Kindle from Amazon.com? You can always try one of those Staples stores. Staples has reached an agreement with Amazon to stock Kindle in its 1500+ stores around the nation. That means soon there will be more ways for people to discover and buy Kindles. The move is another blow to Kindle competitors such as B&N’s nook. Amazon has not only put pressure on B&N by dropping its Kindle prices to new lows, it is now going to target physical retailers to tighten the screws on its rivals in the e-reader market.

Amazon Kindle is selling like hot cakes. Amazon won’t be sharing any numbers with us anytime soon, but it has been struggling to keep up with all the demand. Having Kindle available in Target and Staples stores gives people a better chance to test the device out before picking it up. Just don’t expect Kindle readers to stay in stock for too long.

This move won’t help Kindle surpass Apple iPad, but it will allow Amazon to push some of its competitors out of business. B&N may have sold 1m nook units since its launch, but can it possibly keep up with Amazon’s aggressive strategies? How about Borders (and its Kobo reader)?

Since Amazon started pushing Kindle hard, we have been on the company’s case for selling e-books for too high of a price. Those $9.99 e-books do save people money, considering that hard-cover books sell for much more than that. At the same time, people can’t lend Amazon e-books, nor can they sell them. When a few publishers announced e-book price hikes, that further aggravated e-book fans. After all, how do publishers expect to charge $14.99 for e-books when they cost much less to publish in comparison to regular books. Could Wired.com be right about consumers overestimating cost savings for e-book publishers?

Publishers do price ebooks a little higher than necessary, because they’re concerned about devaluing people’s perception of books. They’re worried that if they sell the digital editions for too little, they’ll have to lower prices for the paper editions as well, which would undercut their main source of revenue,

said Larry Doyle, writer, to Wired. Wired.com may be right about the overestimation part but lets not underestimate publishers’ greed either. E-books can’t be free and those who believe they should be sold for just a couple of dollars are not being realistic. The costs of developing, protecting, and publishing e-books are still high. But over the long run, e-books are much cheaper to produce than regular books. The issue of piracy is there but can’t justify price hikes by publishers.

The e-book industry has been around for quite some time and is maturing all the time. But publishers still have ways to go before they get it right in this industry. A better pricing scheme is certainly required and consumers need to have more flexibility with what they can do with their e-books. It may be time for Amazon to work with publishers to start an e-book subscription business model. Such model could not only boost Amazon’s e-book sales, it could keep prices lower for consumers. We have seen the movie and music industries face similar challenges. E-books are here to stay regardless of how differently publishers and consumers see things.

In your opinion, are e-books too expensive?

A while ago, news broke out about Amazon reaching a deal with Wylie Agency to distribute the work of its clients through Kindle store. Random House was not too happy about the exclusive deal, nor were some of Amazon’s competitors. Unfortunately for Amazon, the deal seems to have fallen through. It seems Random House was able to convince Wylie Agency to back out of the deal. After all, the company was ready to boycott future works by the agency:

The Wylie Agency’s decision to sell e-books exclusively to Amazon for titles which are subject to active Random House agreements undermines our longstanding commitments to and investments in our authors, and it establishes this agency as our direct competitor

Amazon has removed the titles in discussion from Kindle store. They are expected to make their way back to Amazon Kindle store in the near future (according to a statement delivered by Random House):

We are pleased to announce that The Wylie Agency and Random House have resolved our differences over the disputed Random House titles which have been included in the Odyssey Editions e-book publishing program. These titles are being removed from that program and taken off-sale.  We have agreed that Random House shall be the exclusive e-book publisher of these titles for those territories in which Random House U.S. controls their rights. The titles soon will be available for sale on a non-exclusive basis through all of Random House’s current e-book customers.

The good news is Amazon and Wylie won’t have to deal with any legal issues over their agreement. Amazon and Apple are playing dangerous games by going after these exclusive deals. It is only a matter of time before the U.S. government gets on their cases. For now, large publishers are more than ready to fight back.

While we have not been super impressed with Kindle 3′s specifications, it is still the best stand-alone e-book reader around. The improved screen and battery life make it much easier for book fans to put their trust in this device. Amazon has been adding more e-book titles to its database, so Kindle owners have plenty of content to consume on their devices too.

Kindle 3 is not perfect though. It can be improved in many areas, including but not limited to:

• document support
• alternative power sources (e.g. solar)
• better storage
• removable battery
• better web experience
• Kindle software

Kindle 4 is probably about a year away from making it to the market. It is always interesting to try and guess what these large companies will do next. We have many die-hard Kindle fans in our community who are perfectly happy with their Kindle 3. Still, it’d be interesting to see what would make Kindle the perfect e-reader for them. So let’s build Kindle 4 together. If you were the head of Amazon Kindle’s design team, how would you put together the perfect Kindle 4? What features would you add (over Kindle 3)?

Kindle 4: How Would You Improve Kindle 3

Cole Haan Hand-Stained Kindle cover: one of the most stylish Kindle 3 cases money can buy. Has a goatsuede interior that keeps your device safe and sound when you are on the move.

Diane von Furstenberg Kayley Canvas Clutch: designed for those of you into fashion (and reading too). It has a stain resistant finish. It can hold your business cards too.

Cole Haan Hand-Woven Patent Leather Kindle Cover: another super Cole Haan case for Kindle 3. It makes your device look more expensive than it is.

Timbuk2 Nylon Kindle Envelope Sleeve: makes your device scratch proof and can even handle some impact too. It’s TSA approved too.

TrendyDigital Folio Case for Kindle 3: an affordable case for those of you who intend to take more than just your Kindle with you on the road. It has space for your notes and cards too.

BUILT Neoprene Kindle Sleeve: designed for those of you who will spend a lot of your time on the road. Its hour-glass shape protects your device more effectively.

BUILT Reversible Neoprene Kindle Sleeve: similar to the above case in some ways. Its zipper enclosure is going to make sure your Kindle stays inside at all times.

Timbuk2 Nylon Quilted Kindle Envelope Sleeve: its density memory foam protects your Kindle against shocks and impacts. Another TSA approved Kindle case.

Kindle Lighted Leather Cover: the official case for Amazon Kindle 3. It has a built-in light to give you the ability to read in those darker rooms. Light draws power from your Kindle, so you won’t need any batteries.

Kindle 3 Leather Cover: the basic official case by Amazon. It comes in 7 colors and protects your device against scratches. Fits your device perfectly.

Watch this space for more Kindle 3 cases as they are released to the market.

Credit: NY Times

A couple of years ago, everybody expected color-screen e-readers to be the future. That has not changed yet but companies such as Amazon and B&N are still in the process of figuring out a way to introduce such e-readers without having to jack up their prices dramatically. Color E-ink technology still needs some work and is not as cheap as it should be for Amazon to fully adopt it. For those who can’t read on a grayscale screen, there are always LCD-based devices such as The Literati. It’s a budget color e-book reader (by Sharper Image) that offers a color-screen and costs only $150. Is it worth buying? That’s another story.

At this point, The Literati is priced higher than Kindle 3 WiFi, which is curious to say the least. The color-screen feature is nice to have but not a decisive factor for most e-book fans, considering that most LCD-based e-reader fans tend to go with Apple iPad.

Here are the known specifications for this device:

• 7 inch color display
• 480 x 800 resolution
• wireless bookstore (works with Kobo)
• a case

The Literati is expected to show up in Best Buy, Macy’s, Kohl’s, Bed Bath & Beyond starting in October. Does it have a chance to succeed? Let’s just say it won’t kill Kindle. But it does fill a gap in the e-reader market. Not everyone is interested in paying $500+ for an iPad. The Literati provides e-reader fans with an affordable alternative. The price should probably be a bit lower though.

Are you impressed with the Literati?

It is still baffling to see Amazon mishandle the demand forecast for Kindle 3. The company has done a wonderful job making Kindle the best e-book reader around. Being a bit more optimistic with its demand forecast and not making people wait for weeks is something Amazon should try.

The good news is you won’t have wait too long to get your hands on Kindle 3 accessories. A whole set of these accessories will start shipping on August 27th. In fact, some are already shipping. So far, the reviews have been very positive for Kindle 3. We will see if Amazon manages to sell as many units as it is hoping for.

Will you be picking up a Kindle 3? If not, why not?