So not only are ebooks the most popular format, but the growth of ebook adoption is even faster than Amazon predicted, a strong sign that ebooks are now mainstream. Or, to put more simply, ebooks are the preferred format for readers. So now what? How does this shift impact authors, agents, publishers, and bookstores?

With such a clear tipping point, it is important to recall that this is just now happening, so it is going to take some time before everyone accepts this shift and realizes what it means for their business. While many in the industry could see this shift approaching and started the process of adaptation, I think the shift has come much earlier than most anticipated.

Tablet market remains hectic and very competitive

I can’t recall a more competitive market than what we are currently witnessing for tablet computers. While Apple continues to sell iPads like hotcakes, competition is beginning to eat into the market. According to Strategy Analytics, the iPad lost ground in Q4 of 2010. The iPad took 75% of the shipments, which is quite a decrease from the earlier 96% share.

Samsung is reporting that they’ve shipped some 2 million Galaxy Tabs in the two months they came onto the market in November of last year. Unfortunately they are experiencing an above average level of returns. The researchers at Strategy Analytics have found that the customer return rate for the Galaxy Tab is 15%, compared iPad’s return rate of 2%.

Again, the battle of the tablets will be won by the company that delivers the best software experience. Unfortunately for Apple, this is where their closed garden approach to software may ultimately diminish their share of the tablet market. I’d be very surprised if an open solution didn’t gain the most favor for owners.

Software may offer a competitive advantage in the long term, but vendors are currently focused on hardware. Below I take a look at two new devices.

The LG G-Slate

The G-Slate will launch using Android 3 Honeycomb, and it will be the first tablet to launch on T-Mobile’s 4G network. The G-Slate will have an 8.9-inch screen, a dual-core 1 GHz Nvidia Tegra 2 CPU, 32 GB of internal memory, two cameras (5 megapixels on the back and 2 megapixels on the front), LED flash and HD (1080p) video as well as stereoscopic 3D recording capability.

The T-Mobile G-Slate will be among the first 4G tablets to fully benefit from the tablet-optimized Android 3.0 platform, which was designed from the ground up for devices with larger screen sizes.

Brainchild launches the Kineo Android tablet for schools

Aimed at the education market, Brainchild’s Android-based Kineo features an 800MHz dual-core processor, 256MB of RAM and 2GB of storage, as well as WiFi connectivity, an SD card slot and an HDMI output for streaming data through HD television screens.

In a way, the Kineo represents the first signs of the second level of integration of tablets into society. Considered more utility than a resource, these specialized tablets focus on solving a singular problem.

Other news

Things started to get messy when Apple blocked the Sony ereader application because it would have gone around Apple’s proprietary purchase system. Sony responded by conceding to Apple’s demands and adopting Apple’s in-app system. Apple responded by clarifying that apps must only provide equal access (an option) to the Apple in-app purchasing system.

Interpretations of these requirements differs. So far, there are many applications currently in use on iPads — like the Kindle app — that take iPad users to a website for them to complete purchases. Apple has not indicated if they will crack down on these applications. Amazon has yet to comment on the prospect of having to include an Apple purchasing option. Currently it is estimated that 40% of iPad ebooks are bought directly from Amazon. Another 12% are bought from Barnes and Noble Nook bookstore. What’s at stake is the automatic 30% cut that Apple takes on all iBookstore purchases.

While I’ve mentioned this before it bears repeating: Apple must concede that they will not own ebook distribution like they do for digital music downloads. What’s confusing is that Apple is a hardware company. Yes, they stumbled onto the iTunes monopoly, but iTunes was only a utility to get people to buy more iPods. So with an already commanding lead in tablet sales, why jeopardize that lead by forcing users to stay within their walled garden? We live in a highly networked world and consumers no longer accept inferior service delivery. They merely route around the failure and get what they need from the next suitable replacement. Time will only tell whether customers care more about Apple’s “it just works” strategy or freedom of choice.

Related:

• Does Apple’s newly enforced policy really benefit Apple?
• iriver Story HD e-book reader
• Vook secures $5.25M for mixed media reading
• Dust Off That Indie Manuscript: CDBaby Launches BookBaby
• Droid Comic Viewer is an e-reader that goes the distance
• New Study Shows How ebooks Have Changed the Reading Landscape
• An Interview with O’Reilly Ebook Guru, Andrew Savikas

Since all of the Android tablets we’ve seen thus far are so similar in appearance, the sleek design and effective marketing of Apple — and the rumored iPad 2 — may win out with confused tablets shoppers. However, I still believe hardware is not the end game here: software will ultimately motivate future tablet buyers, and that represents a weakness in an iPad total domination strategy.

Switching gears, in this edition of Ereading Update I take a brief look at two new tablets and look at Google’s new ebook acquisition.

Infibeam Pi2

Infibeam announced plans to offer an upgraded version of their Pi ebook reader. While the original Pi was a dedicated ebook reader, the new Pi2 will also provide Internet browsing , gaming, a touchscreen, and Wi-Fi connectivity.

Aimed at the Indian market, the Pi2 supports 15 Indian languages, including Sanskrit and Hindi. The device is already available for pre-order for approximately $264.

Notion Ink Adam

The Notion Ink Adam has been a long time coming, but the wait is now over for everyone who participated in the sold-out pre-order. While the final design was announced last October, the Adam has finally cleared its FCC and CE hurdles and is ready to ship. With a 10-inch touchscreen, WLAN 802.11 b/g/n, and an estimated 15 hours of battery life, I’m sure early customers are anxious to start ereading on their tablets. And with an NVIDIA Tegra 250 video chip and a 3-axis accelerometer, reading isn’t the only thing customers can do with these devices.

Google kicks off 2011 with eBook Technologies buy

Late last year, Google announced the availability of the eBookStore and I think, like me, most people thought Google was finished with their ebook strategy. Turns out, we were premature in our conclusion. Google recently announced their purchase of eBook Technologies. While much of terms of the deal were not disclosed, a Google spokeswoman said, “Together, we hope to deliver richer reading experiences on tablets, electronic readers and other portable devices.” eBook Technologies, which offers ebook readers and an ereading platform, added, “Working together with Google will further our commitment to providing a first-class reading experience.” Speculation from Mashable suggested that the acquisition is most likely about patents, personnel and technology, rather than hardware or software.

Other news

Ereading device news is hard to come by following CES’ smorgasbord of announcements, but a few additional developments did catch my attention:

• HP has scheduled Feb. 9th for the official coming out party for the WebOS tablet, but leaked images of the company’s yet-to-be-unveiled tablet(s) appeared online this week. Rumors associated with the images say the 9-inch model will be called “Topaz” while a 7-inch tablet is code-named “Opal.” As I alluded above, many in the tablet sector are more interested in the software package the HP tablets will deliver and whether they will be able to differentiate themselves from the sea of look-alike, feel-alike Android tablets.
• Aldiko Book Reader, one of the most popular Android ereading applications, has announced the availability of version 2.0. The new version of Aldiko includes support for EPUB and PDF formats, as well as Adobe DRM. In addition, the application will offer access to a new ebook marketplace that collects offerings from different booksellers, and it will incorporate a new section that allows you to add your own ebook catalogs.

Related:

• Book sales: going down, going up
• Introducing the Neoslate e-Paper Writing Tablet for $99
• Scribd Gets Another $13M, Pans for Product Expansion
• The 2010 Engadget Awards: Nominate the E-reader of the Year
• Nook Color Gets Overclocked To 1GHz, What’s Next For This E-Reader?
• Mirasol e-readers still several months away
• Nook Color (Android eReader) hacking galore: Ubuntu OS

As I predicted, it was also a big holiday season for ereaders. Both Amazon and Barnes & Noble recently announced that their respective dedicated ereading devices were the best-selling items for each of the companies. Now stop and let that one sink in a moment. According to Amazon, they’ve sold more Kindles in the U.S. in 2010 then any other single product during that same time. Barnes & Noble also says their latest LCD-based Nookcolor tablet was the company’s top-selling gift of the holiday season.

The holidays weren’t that kind to Borders and small bookstores. The diminishment of either outlet will likely accelerate the adoption of ebooks as the primary publishing medium.

CES 2011

This week, all gadget lovers were focused on Las Vegas, as the 2011 International Consumer Electronics Show kicked off the year with a new round of device announcements. The dominant ereading trend was multiple-use tablets, with ASUS, Lenovo, and Motorola each announcing new tablets (HP was notably absent, though they do have a Feb. 9 WebOS event).

Here’s a look at some of the new tablet offerings.

ASUS Eee Slate EP121

The ASUS Eee Slate EP121 is one of the first Windows 7-based tablets to come to market. The tablet features a 12-inch (1280×800) multitouch display and will run a full version of Windows 7 Home Premium. The multitouch display comes with a built-in Wacom digitizer, which means a user can control the tablet with the included stylus or attach a Bluetooth-enabled keyboard. The EP121 is powered by a Core i5-470UM processor, includes 2 to 4GB of RAM, and a 32 or 64GB SSD. Amazon is accepting preorders ($999 for the 32GB model, $1,099 for 64GB).

ASUS also released three Android devices: the Eee Pad Slider, the Eee Pad Transformer, and the Eee Pad MeMO. The ASUS Eee Pad Slider includes a 10.1-inch IPS touchscreen and a slide-out QWERTY keyboard that will incline the tablet screen vertically. The ASUS Eee Pad Transformer includes a 10.1-inch capacitive touchscreen and optional docking station with full QWERTY keyboard. The ASUS Eee Pad MeMo is a 7.1-inch capacitive touchscreen based on Android 3.0.

Lenovo IdeaPad and LePad Slate

Lenovo is the first device maker to bring a hybrid design approach to their tablet strategy. This week they announced the IdeaPad U1 hybrid with LePad slate, a two-in-one device that combines a high-definition slate featuring access to Android applications and a keyboard base that provides a full Windows 7 computing experience.

The device weighs less than two pounds and is half-an-inch thick. While the tablet currently uses Android 2.2, Lenovo says that when it ships in the U.S. it will run Android 3.0. Other features include a front-facing camera, WCDMA and EVDO connections, a 1280×800 10.1-inch display, a 32 GB HDD, and 1GB RAM.

Once docked with the IdeaPad U1 Hybrid, the slate converts into a Windows 7-based netbook. A 1.2GHz Intel Core i5-540UM processor will power the IdeaPad, and it will also include 2GB DDR3 RAM, a 320GB SATA hard drive, and 802.11 b/g/n and Bluetooth 2.1 networking.

Motorola XOOM

Verizon Wireless teamed with Motorola Mobility to unveil the Motorola XOOM, supposedly the first device on Google’s new Android 3.0 Honeycomb operating system. It features a dual core processor and a 10.1-inch widescreen HD display. The tablet will launch as a 3G/Wi-Fi-enabled device in Q1 2011 with an upgrade to 4G LTE in Q2. The XOOM will support 1080p HD video and HDMI output to display content on larger HD screens. It also features a front-facing 2-megapixel camera and a rear-facing 5-megapixel camera that captures video in 720p HD.

Other news

This week also saw the Wall Street Journal draw their focus onto the growing battle between the planned Google Digital Newsstand and Apple’s iPad magazine offerings. The article raises one of the most controversial and unresolved issues in this new era of digital publishing: the relationship between the content producer (author) and his/her readers. Content producers want a more intimate and engaged relationship with their audience and readers want to get closer to their favorite content producers.

The future of publishing demands a cohesive relationship between producer and audience, which for the most part is currently non-existent. For example, authors that in the past have used traditional publishers have relatively little information about who bought their books. They may know some sparse demographic details, but there is no direct connection between author and reader.

In my opinion, look for this issue to become one of the biggest challenges for publishers of all types to address. Many top-selling authors are leaving the fold of traditional publishing to free themselves of the layers of intermediaries that separate them from their audience. How existing publishing houses respond to this issue will be a major factor in their long-term relevance.

Related:

• So Long, Copia E-Reader, We Hardly Knew Ye‎
• Hands-on with LG’s 4G-capable Revolution
• Your Pocket Tablet Has Arrived

• The release of Apple’s iPad kicked off a wave of new, ereader-friendly devices.
• Access to these devices is getting easier. Most leading office supply, electronics, and department stores sell one or more dedicated ereader devices.
• The flexible application strategies from Amazon, Google, and Kobo mean that even if you don’t get a shiny new mobile gadget as a gift, you can download an ereader application for your mobile phone, laptop, or desktop computer.

I sense a strange irony emerging from such an over-active ereader marketplace. With the strong application strategies of Amazon, Google, and Kobo, it’s unlikely that any device manufacturer will end up owning a majority of the marketplace. Up until the release of Google’s eBookstore platform, I thought it was premature to anticipate the future of dedicated ereading devices. But It’s clear to me now that dedicated ereading platforms will only be a niche market. Any of the multiple platform approaches that manage a user’s library in the cloud will ultimately be the preferable option. Surely there will continue to be innovation in the dedicated ereader device market, but strong competition will keep profit margins low. The real competition in the ereading marketplace will happen with software, not hardware.

Looking forward into 2011, I see two areas that will be important within the ereader and ebook market: first, we’ll see an implosion of the dedicated ereader device market. Subsequently, the focus will shift to the maturation of the ebook market.

Prediction 1: The dedicated ereader market will crest

When Apple launched the iTunes store in 2003 and established a marketplace for digital music, most of the commercial electronics makers were taken by surprise. Apple’s capture of this new market was so swift, no one was able to mount a serious challenge. Even now, I don’t believe any company will break Apple’s stranglehold until the experience of consuming digital music changes.

When Apple announced plans for the iPad and the iBooks platform earlier this year, the commercial electronics marketplace was determined to prevent Apple from repeating their digital music success with digital books. While Apple has built a commanding lead in the tablet marketplace, competitors flooded the market with a plethora of different devices.

Despite bold predictions of an expanding market for dedicated ereading devices (here and here), I believe that demand for these devices will peak in 2011 and rapidly surrender to the growing popularity of multiple-purpose tablets, like the iPad and its competitors.

The downsides inherent with dedicated ereaders will work to decrease consumers’ desire for these devices. The disadvantages include:

• Complications resulting from device lock-in, such as the inability to migrate purchased books to a different platform.
• As readers settle into using their new devices, the experience of identifying, obtaining, and recommending titles will become increasingly more important. Due to their limited functionality, these single-purpose devices may prevent readers from sharing their reading experience with friends and family.
• With very few devices offering color displays or strong graphics capabilities, consumers may determine that text-only books aren’t worth the price.

Prediction 2: An increased focus on the ebook experience

As the holiday decorations go back into storage early next year, the pressure will really be on the publishing industry to deliver the goods for the freshly-minted marketplace of ereaders. The most interesting aspect of the ereader tipping point will be the evolution of the ebook experience. By “experience” I mean the full environment of ebooks: how readers discover books, purchase them, read, and share titles. While a portion of this environment will be built into specific ereader devices, the remaining aspects of this environment will have to be built from software.

It seems natural to expect that new ebook consumers will want to replicate their existing reading-related behaviors. While I’ve seen how sites like GoodReads and Shelfari have become an active part of this process, it is less clear how sites like Facebook and LinkedIn help readers share their love for books. It’ll be interesting to see how this emerging ereading environment integrates into existing social networks.

Tim Berners-Lee recently noted the importance of ebooks remaining part of the Internet. His concern was that by packaging books into binary applications for consumption on mobile devices, they would become invisible to the Internet. This is similar to what happened with content that was packaged in Adobe Flash files, which were hidden from search engines up until very recently. I agree with Berners-Lee and submit that, while of great interest to many publishers, books as applications will be a passing fad because they cut readers off from the rest of this ereading environment.

Looking forward, the publishing industry has a few areas that might become obstacles to long-term growth in the ebook market. First, with millions of books pre-dating the ereading tipping point, how will publishers make those titles available to consumers in digital formats? In this regard, Google’s efforts to scan books may become their default answer.

The second tricky situation involves localizing content for a global economy. As broadband and wireless access expands into more countries, the demand for digital books in languages other than English will grow. If that material isn’t available, digital sales will be hampered.

2011: Trial by fire

Several years ago, I could already see drastic change approaching the publishing industry. The uncertainty of how the industry would react to those changes, coupled with the opportunity to actively participate in that change, is what sparked my interest in the future of publishing.

For most publishers, 2011 will be a critical period. The digital book changes publishers have already made will meet fully with the harsh demands of a significant consumer base. Authors, agents, publishers, and bookstores will need to agile if they want to keep up with the demands of digital readers.

Related:

• Hack: Enable the Android Market on your Nook Color
• Authors Say Yes & No to Amazon’s Free Nielsen BookScan Figures/li>
• Kobo Makes ebooks Social with New Facebook Connection
• In 2010, comics owned the iPad
• Local language content to spur e-reader global growth

First, the rate of new devices in the ereader market space is slowing down. The IFA Berlin electronics show and the Frankfurt Book Fair were high-water marks. Since then, the overall rate of new product announcements has dropped.

This is probably explained by the second trend: Pundits and analysts are already making their recommendations for the holiday shopping period. What most manufacturers are realizing is that the window of opportunity for gaining any significant share of holiday-related purchases is rapidly closing.

The combination of these trends means that until the new year begins, there will probably be fewer product announcements than we’ve seen in past months.

That said, there have been a few devices announced recently that merit consideration. What’s most surprising about this set of new ereaders is that they’re from companies that aren’t strongly associated with personal electronic devices.

E FUN’s Android tablets

E FUN, a consumer electronics designer and marketer, is set to introduce Android-based tablets this fall. The Nextbook line will feature a 7-inch color ereader dubbed the Next1, and a 7-inch color touchscreen TFT tablet, dubbed the Next2. Both will feature 2GB of internal storage, as well as an SD/MMC expansion card slot. The Nextbooks will also include a variety of Android-based applications such as an MP3/photo viewer, a video player, and the Kobo eReader, which will have access to the Borders eBook store. Since the tablets run Android, they will also include the Adobe Flash application. For connectivity, the Next1 will offer only a USB port, while the Next 2 will offer USB and 802.11g Wi-Fi. Each of the Nextbooks will come preloaded with 25 ebooks.

Preliminary information indicates that the Next1 will have a suggested retail price of $149.99 and the Next2 will be available for $199.99. Initially, the devices will be available from the Home Shopping Network.

bModo’s Windows7-based touchpad Tablet PC

The bModo12 is an all-in-one tablet that aims to combine tablets and netbooks. The tablet will feature a 11.6-inch LED HD capacitive touchscreen with a 1366×768 resolution. It will be powered by Intel’s 1.66 Ghz Atom processor and feature an HD video accelerator. In addition, the bModo12 will include 1GB of internal RAM, 32GB of internal storage, and a SIM card slot for 3G connectivity.

Additional hardware capabilities include: Bluetooth 2.1 and 802.11 b/g/n connectivity, a 1.3 megapixel camera, 2 USB Ports, an SDHC card slot, and a Mini HDMI port. The Microsoft Windows 7 Premium options will include an ereader, Internet Explorer, and support for standard PC applications.

bModo has also included a launcher application called Bossa Nova2 that will allow users to switch between a Windows 7 desktop and a Bossa Nova graphical user interface, which is designed to optimize the touch capabilities of the device.

BenQ Launches nReader K61 with 3G and WIFI

Following on the footsteps of their initial introduction into the ereader market, the K60, BenQ announced the availability of their newest model, the K61. This new model comes with several upgrades, including integrated WI-FI, 3G, and a touchscreen. Additional hardware specifications include 2GB of internal memory, USB support, and an SD-card slot capable of adding 16GB of additional storage. Now available in Taiwan for slightly more than $300, the K61 features a 6-inch touchpanel with support for drawing and taking notes.

Other news (and a tipping point for copyright infringement)

The biggest news last week was the unveiling of Microsoft’s new Windows Phone 7. Windows Phone 7 is mostly a response to the iPhone, rather than the iPad or other tablets. While it’s safe to assume the new Windows Phone 7 mobile platform will soon see ereader applications from Amazon and Kobo, PC Magazine says there’s currently a shortage of applications available for the new mobile platform.

Perhaps the most striking news this past week was an article by Adrian Hon about his experiences with ebook copyright infringement. Hon relates his experience purchasing the hardback copy of Iain Banks’ latest novel “Surface Detail.” Out of curiosity, he checked to see if he could find a copy of the book online to load on his iPad. As he rationalizes, he already bought a copy of the book, and he’d rather not tote around the 627-page tome. Not only did he find a high-quality EPUB copy of the novel, but he also found copies of other bestsellers.

Why is Hon’s article important? I’ve been tracking this topic for a while and until now, the only books that were being shared online were in PDF format. I think it’s a tipping point because current best-selling hardcover books are now available simultaneously on file sharing sites. This provides clear evidence that people are sharing purchased EPUB files.

In my opinion, ebook copyright infringement hasn’t really been a real threat to publishers. It’s been more like the pink elephant in the room that senior executives discuss. Hon’s article should be enough proof to make publishing executives recognize that the threat from ebook file sharing is now real and it will affect ebook sales.

Related:

• CTL Announces The 2goPad
• Pew: Cell Phones ‘Near Ubiquitous,’ Tablet Use Growing
• KDDI Shows Biblio Leaf SP02 With Solar Panel
• Nook Update to Add Faster Page Turning, Device Syncing
• Pandigital Novel eReader comes with touch screen
• Booki.sh: An HTML5-Powered ereader for Everybody

According to vice president and publisher Ana Maria Allessi, this was encouraging news. While I’d agree it is great news for the adoption of ereaders, her exuberance made me wonder. Was this really cause for excitement? At the time of the article, HarperCollins had sold 11,250 electronic and approximately 9,300 hardcovers copies. From a pure numbers game, there was no doubt, as was previously reported by Amazon, electronic books are outselling their hardcover counterparts.

When we check the retail price of these different versions, another perspective comes into focus. Right now, the Amazon Kindle edition of the book costs $9.99 and the hardcover $14.99. So total sales for the Kindle edition are $112,388 and total hardcover sales are $139,407. At this early stage of the transition from hardcover to ebooks, it’s not simple to compare these numbers or draw any conclusions.

However, if we add in recent projections for the growth of ereaders, I think it is safe to assume that the disparity between ebook and hardcover sales will only increase. Which means that, over time, best-seller income for publishers will drop. This, of course, assumes an apples-to-apples comparison of relatively the same number of total units sold. Many publishers are hoping that this assumption is wrong and lower ebook sales will be made up with increased total units sold. If we try to compare a scenario where just the hardcover of the Lippman novel is available to one that includes an electronic version, to break-even, the Lippman ebook thriller would have to outsell the hardcover-only scenario by more than 50 percent.

It will take time to achieve this transition. As I was reading Chris Anderson’s “Free,” I was reminded of “The Law of Conservation of Attractive Profits.” It immediately struck me that publishing was suffering the commoditization of their main product: books. Essentially, as the value of books drops, the law suggests that the value has to emerge in an adjacent stage in the publishing process.

Right now, the stage that is absorbing the lost revenue from falling ebook prices is in the development of ereaders. As this new market expands, the value being lost in books is being captured in sale of ebook readers. But this will only be a temporary stop as the value continues to migrate away from books. After ereaders become a commodity, their collective prices will start dropping. The next logical adjacent layer to capture the migrating value is in proprietary, independent, and open ebook marketplaces. So once the market is flooded with ereading devices, then the value will move into the distribution channel of ebooks.

This framework explains the breakneck speed of device announcements, and the bigger players like Kobo and Kindle with their multi-platform clients looking down the road. In this scenario, Apple’s closed platform may not work to their advantage. While Apple got such a big jump on other MP3-player manufacturers, it seems unlikely that the iPad will enjoy the same level of market domination as the iPod. While they’ve not hinted at expanding the reach of the iBookstore to other platforms, it will be fascinating to see if Apple will port the iBook ereader to other platforms.

I’ve got a feeling that the e-stores will not be the last stop in the book value migration. Once ebooks themselves become a commodity, then we’ll need effective systems to help us manage our libraries and keep a personalized pipeline of books in our ereading queues. In this area, it’s much too early to make any solid predictions, except that there is one large search company that’s well positioned to help Internet users find the books they’re looking for … but that’s a whole other story.

More diversification in ereader market

It’s clear that portable electronics competitors are not going to concede the ereader platform to Apple as they did for the portable MP3 market. So in just this last week, we saw announcements by Sharp and Research In Motion’s Blackberry division. Each of these announcements continues the trend toward multiple-use devices. In addition, it underlines my analysis that the next sector of competition in publishing will be at the cloud level.

Sharp Galapagos Devices and Service

Sharp announced plans to capture migrating revenues in both the ereader and ebookstore markets. Its Galapagos devices — named after the islands that partially inspired Charles Darwin’s evolution model — will come in two versions: A 5.5-inch LCD model aimed at the mobile market, and a 10.8-inch LCD version aimed at the home market. Initially posed for the Japanese market, the Android-based devices are expected to become available in December 2010. Featuring color displays, the devices will include a trackball to facilitate ebook navigation. Both devices will come with 802.11 b/g connectivity.

The devices were only half of the announcement. Sharp will also launch a cloud-based media service business, also nicknamed Galapagos. Starting with a 30,000-item store of newspapers, magazines, and books, the cloud service will provide periodic software updates. All of the content will use the XMDF ebook format to support Japanese expressions, such as vertical writing.

Research In Motion Blackberry Playbook

During their annual BlackBerry DEVCON conference, Research in Motion (RIM) unveiled the BlackBerry PlayBook. Featuring the Blackberry Tablet OS, the new Playbook will have a 7-inch capacitive touchscreen capable of displaying WSVGA. The Playbook will have high-definition audio and video playback, including an HDMI video output. With dual HD cameras, the Playbook also supports 1080p HD video recording as well as video teleconferencing.

As we identified in last week’s update, the Playbook is a multi-purpose and multi-tasking device aimed at the enterprise market. It’s powered by a 1Ghz dual-core processor, and it integrates with existing BlackBerry smartphones via a secure Bluetooth connection. It’s also compatible with the BlackBerry Enterprise Server. Initial versions will feature 802.11 a/b/g/n connectivity. 3G and 4G models are planned as well.

The BlackBerry Tablet OS is based on the QNX Nuetrino architecture, which means that it is fully POSIX complaint for porting existing C-based applications, including support for Open GL for 2D and 3D graphics.

RIM also announced a new applications development platform called WebWorks that will provide deployment possibilities for both the Playbook and BlackBerry smartphones.

The Playbook will come pre-loaded with the Kobo reader and access to the Kobo global ereading service. Unlike other Kobo readers, the Playbook version of the Kobo reader will use the Blackberry Messenger (BBM) service to access the new BBM social platform. Amazon has developed a version of its Kindle app for the the new Blackberry Tablet OS.

Kobo gets Wi-Fi

This week Kobo announced the newest addition to their ereader line-up, the Kobo Wireless eReader. Thanks to the addition of 802.11 b/g connectivity, the $139 device can directly access the 2.2 million books available in the Kobo store. Kobo’s new device also features a faster processor and a sharper E Ink screen. The ereader is available for pre-order through Kobo’s website

Related:

• Linspire on MeeGo Tablets This Year
• Ereader Users Likely to Read More, Buy More Books, Study Says
• Kno Unveils A Second E-Reader (With Only One Screen)
• Bookeen Cybook Orizon e-Reader out in October
• K-NFB Releases Free Blio E-Reader Software
• Toshiba and Best Buy Collaborate to Introduce Children’s Laptop

In the meantime, I’ve still been able to dig up a few exciting announcements and breaking news stories. In last week’s update I referenced a study by Informa Telecoms & Media. While that study reported large growth in the ereader market, it also predicted that by 2014 dedicated ereaders would eventually lose favor to multifunctional portable devices. The material include in this week’s update shows strong support for that conclusion.

HTC Desire Z Android phone adds ereader

While previously known for their work with Microsoft smartphones, since 2009 the Taiwan-based manufacturer has switched its core function to the Android operating system. The latest model HTC has announced is the Desire Z. Based on Android 2.2 (Froyo), the device will feature a 5-megapixel camera, 1.5 GB internal storage, and an expandable microSD memory slot. Since the device is primarily a smartphone, it has a wide variety of connectivity options including 3G, GPRS, EDGE, WiFi 802.11 b/g/n, and Bluetooth 2.1. It also has a standard micro USB 2.0 adapter.

The Desire Z will come preloaded with a variety of HTC widgets, including an ereader. The coolest features HTC Sense provides come into play when the unfortunate occurs. Are you prone to misplacing your phone? Ever had to find your phone when it’s in silent mode? Well, through HTCSense.com you can send a message to your phone to ring loudly, so you can find out which stack of papers it’s hidden beneath. It can even help you pinpoint the phone’s location and see it on a map. How cool is that? If you actually lose your phone, HTC Sense can lock the phone and erase all of your personal data. You can even post a reward message to the locked screen, in case a stranger finds it and wants to help reunite you with your lost baby.

enTourage eDGe dual-display ereader caught in wild

While the enTourage eDGe is not scheduled to be available until later in September, this week photos of the device appeared on the Internet and quickly fueled speculation that the device would begin shipping soon. Considered one of the first devices to incorporate dual screens, the eDGe can function as a tablet or a notepad.

Weighing approximately three pounds, the Android-powered device will be available in 3G and WiFi 802.11 b/g models. With one screen you will get a 10.1″ touchscreen, which will also be Wacom-pen enabled. On the other the enTourage eDGe will feature a 9.7-inch E-Ink display capable of showing 8 shades of grey. Internally the device will have 4 GB of storage, with 1 GB reserved for the system. It will come with an SD slot for additional storage.

Not only will the device serve as a nearly perfect proxy for reading with the screens able to open clam-shell like, the touchscreen can rotate 180 degrees to turn the device into a full-fledged tablet. For input, the device comes with a stylus for input on the reader and the tablet as well as a virtual keyboard. A separate keyboard can plug in to one of the device’s two USB ports. In addition to ereading, the enTourage eDGe will be capable of audio playback of the most common formats as well as video playback, include Adobe Flash Lite.

With an expected price tag way above most e-readers, $549, it’s hard not to acknowledge that you’re getting much more than just an ereader, a tablet, or a netbook. In fact, you’re getting all three, which makes the device very appealing for anyone looking to get a solid ereader as well as a multipurpose computer.

Dell’s Convertible Duo tablet

Staying with the multiple configuration devices, Dell has announced a computer that serves as both a tablet and a netbook. The Inspiron Duo is a 10-inch netbook at heart, but through the use of two axis points that are hidden within each side of the display, a simple flip of the display converts the Duo into a tablet. The design has been labeled “netvertible.”

While the Duo was unveiled at the recent Intel Developer’s Conference in San Francisco, not many details about the hardware, availability, or pricing were announced. What is known is that within the Duo lies a dual-core Atom N550 processor running Windows 7 Home Premium.

Other news

Originally unveiled at the Consumer Electronics Show in Las Vegas in early January 2010, recent reports indicate that the Blio eReader software will be ready for Windows starting on Sept. 28, 2010. Users of iOS and Android devices will have to wait, as there’s no official timeline for Blio coming to those platforms.

In other ereader application news, the Gutenberg eReader application began shipping this week from the Google Android Market. For $2.99 the Gutenberg application allows users to access free e-books on demand from the Project Gutenberg catalog. With built-in search capabilities, users can search by author, title, or subject. If necessary, users can even use a full Google search for titles. They can also browse through the library by genre. Customers can try the application for 24 hours before buying.

Related:

• Lenovo LePad to be launched in December
• Pegatron rumoured to be making HTC Android tablet
• HP Shows off Tablet Device for Printer
• Fewer than One in 10 Americans Use an eReader, Harris Poll Says

These forecasts not only predict a growing number of devices being used by consumers, but also a growing amount of online content to feed those devices. Taken together, these projections create an optimistic short-term picture for the ereader market.

Turning to this week’s news: we’ve got announcements from Elonex, Ectaco, and Velocity Micro, as well as an update on the Samsung Galaxy Tab.

Elonex launches nine Android tablets

If mimicry is the sincerest form of flattery, then consider Apple officially blushing from the release of nine different Android tablets from manufacturer Elonex. Announced during the IFA electronics show, these devices all share a striking similarity to the Apple iPad.

The devices will be affordable. The expected price range for the smallest device, featuring a five-inch screen, is around $125. The top-end, 10-inch model will be priced around $200.

Few details are available about the internal specifications of the devices, but the new seven- and 10-inch eTouch devices have been seen with a USB keyboard and case combination that gives the tablets the look and functionality of full-fledged netbooks.

Samsung plans Galaxy Tab U.S. event

The Wall Street Journal is reporting that Samsung will introduce the Galaxy Tab to the North American market this week. With fresh deals with Verizon Wireless, Sprint Nextel, and AT&T, the Android-powered Galaxy Tablet will likely retail between $200 and $300. Of course, the final pricing will depend on whether carriers decide to subsidize the devices in exchange for 3G contracts.

Velocity Micro Cruz runs Android, but doesn’t connect to the Market

This week, the Cruz Reader will reach store shelves and begin shipping from the company’s website. The seven-inch tablet will run Android 2.0 and it comes pre-loaded with the Kobo e-book application from Borders. List price for the device will be about $200.

While the device will be capable of browsing the web, watching videos, and playing games, it will not come with access to the Android market place. Instead Velocity Micro will include their own Cruz Market for applications. For connectivity, the Cruz Reader will support 802.11b/g and USB. The Reader will come with a bundled 4GB SD card, which is upgradable for more storage.

Ectaco goes small

jetBook Mini eReader rejects the recent trend of pushing the size of ereaders ever larger. Weighing only 5.8 ounces, the new ereader from Ectaco features a five-inch TFT screen and uses four standard AAA batteries. The jetBook Mini offers a SD Card expandable to 2 GB. The device can be pre-ordered now, with an expected shipping date of Oct. 1.

Other news

While market research differs, there is still strong demand for the ereader devices and that demand will continue to grow through 2014. These conclusions stem from two separate market research reports, one from Informa Telecoms & Media and the other from In-Stat. Although these reports share an optimistic short-term view of dedicated ereaders, the Informa research predicts that dedicated ereaders will peak in 2014 and give way to multi-functional devices like the Apple iPad and Samsung Galaxy Tab.

Bolstering the demand for these devices is a growing preference to obtain news from online sources. A recent report from the Pew Research Center for the People and The Press revealed that new technologies are slowly replacing print news consumption. Roughly a third of the public admitted to obtaining news online, and another nine percent would fall into that category if you included cell phones, email, social networks and podcasts. Overall, during the period of 2006-2010, the number of people who read only online news has more than doubled from five percent to 11 percent. During the same time, the number of people only reading print has plummeted from 34 percent to 21 percent.

Finally, Borders is following in Amazon’s footsteps and expanding the reach of their Kobo service on to the Kobo desktop app. The free downloadable application allows consumers to read e-books formatted for the Kobo platform, shop for e-books directly from the Kobo eBook store, and build a digital library of books. Kobo currently offers dedicated applications for iPhone, iPad, BlackBerry, Android, Android tablets, as well as the Kobo eReader. The desktop app is available for both Windows and Macintosh.

Related:

• Acer Developing 3 Tablet Computers
• Student E-Reader Startup Kno Raises $46 Million
• Google Editions To Launch In Japan Next Year
• Could an e-book rental marketplace help news publishers find a new source of revenue?

For some, the electronics show unofficially became known as the weekend electronics manufacturers revealed their responses to Apple’s iPad. There were tablet announcements from Toshiba, ViewSonic, and Archos, each of which I covered last week. But that wasn’t the end of the iPad competitors. Neofonie, Samsung, and Telefunken also got in on the action.

Neofonie WeTab

While many of the new tablets announced only equal what Apple has already accomplished, the Neofonie WeTab actually jumps ahead of the iPad. Sporting an 11.6-inch HD capacitive touchscreen display with a 1366 x 768 pixel resolution, the WeTab also includes a 1.66GHz Intel Atom N450 processor. Common in many netbooks, this processor gives the WeTab the horsepower necessary to run any operating system. While initial rumors speculated that the device would use a version of Android as the operating system, it now looks like it will use MeeGo Linux.

The WeTab will also include HDMI output, 2 USB ports, and an integrated 1.3 MP camera, all of which are lacking in the iPad. While the initial version will feature 802.11 a/b/g/n, as well as Bluetooth 2.1, a later model will include 3G connectivity. The WeTab seems like a very worthy competitor to the iPad.

In conjunction with the WePad announcement, NeoFonie also announced the availability of their WeMagazine ePublishing Open Platform. Based on the company’s existing print and online content management system, the WeMagazine platform integrates their proprietary WeFind search engine for content location and aggregation. This platform is intended for not only the WePad, but other tablets, desktops, and smartphones.

Samsung Galaxy Tab

Samsung announced the launch of the Galaxy Tab (Model GT-P1000). Based on the Android 2.2 operating system, the Galaxy tab features a 7 inch TFT-LCD display that is powered by a Cortex A8 1.0 Ghz application processor.

With 512 Mb internal RAM, the device comes in both 16Gb and 32Gb models, with expansions up to an additional 32Gb. it includes support for Adobe Flash 10.1 and a range of multimedia formats: DivX, XviD, MPEG4, H.263, H.264, as well as others. This is the first tablet that is DivX certified. It can connect to Vodafone’s 3G network and it has 802.11n Wi-Fi.

Telefunken T9HD

Telefunken announced two new tablets and previewed a 3D prototype tablet during IFA. The two new Electrostatic Touch tablets come in a 5 inch and 7 inch models. Besides different size screens, the two tablets share the same set of specifications. Billed as more multi-media players than e-readers, both come with an E-Book Reader capable of talk to speech, book marking, auto scrolling, and variable size fonts.

Based on the Microsoft Windows CE 6.0, the devices use a Samsung C100 833Mhz processor to power the tablets. With 256 Mb internal DDR2 RAM, the T9HD comes in 16Gb and 32Gb models with an additional standard SD card slot. As mentioned, the T9HD is capable of high definition multimedia playback of all of the most popular video and audio formats, including Adobe Flash. In addition, it features the Yamaha Audio Chip with DBEX sound improvement technology. Packed with built in speakers, the T9HD can also record voice messages. It even includes a FM radio tuner. For connectivity, the T9HD includes Bluetooth 2.0, HDMI v1.2 output, and a USB 2.0 port.

Other news

Almost as if was queued up for the other shoe to drop, reports said Apple doubled production of the iPad to 2 million per month and its shooting for 3 million to meet holiday demand. Unfortunately, that production is geared toward the North American market.

In Kindle-related news, two interesting news stories popped up during the last week. The first will be exciting for Kindle owners who are also fans of Manga comic books. One of the areas where the Kindle was compared unfavorably to the Apple iPad was its inability to display comic books. Now, thanks to the efforts of FooSoft’s Alex Totsov, the Kindle can display Manga in black and white using the open source software tool Mangle. This desktop tool essentially allows you to add images into a book and then export them out into a format that the Kindle can “read” as a book. A nice tutorial is available to step you through the process.

As part of the Library Services and Technology Act, libraries around the United States are receiving grants to buy Amazon Kindles for on-site use. In addition, the grants allow the libraries to equip the Kindles with around $2,500 worth of ebooks. Through this program, even rural libraries can add the ereaders to the set of services they can offer their patrons. The Georgetown County Library in South Carolina recently received a grant for $25,000, which covered the costs of 25 Kindles and the shared library of ebooks.

Related:

• E-Reader from iriver Demoed at IFA 2010
• Richmond company offers up e-reader alternative
• Good E-Reader IFA 2010 Exclusive: Coby 810 tablet spotted

The IFA traditionally offers an early indication of what gadgets will sell well through Christmas. With order volume stemming from last year’s show reaching nearly $3.8 billion, it’s no wonder so much attention is focused on the show .

Toshiba’s SmartPad

Images of the new Toshiba SmartPad were recently leaked, but with little concrete information about the device. Some news sources are claiming that the new Android 2.2-powered device will actually be called the Toshiba Folio 100. There may also be a Windows 7 version of the SmartPad as well. Little is available from Toshiba itself other than the device is set to ship in October. This is one of the devices that is expected to be unveiled at IFA.

ViewSonic ViewPad 7

With a screen that measures 7-inches across, the ViewPad is jokingly being referred to as the world’s largest phone. Featuring both a touchscreen tablet, the ViewPad also provides a slot for a full-sized SIM card that will offer both voice and 3G data. In addition, the ViewPad will feature a 3 megapixel front- and back-facing camera. The device will run Android 2.2. ViewSonic has not unveiled pricing or availability — those details will probably be announced at IFA. However, industry analyst reports indicate that the device will be around $550 and launch sometime in October.

Archos Android Internet tablets

This week brought the announcement from Archos that they were launching five new Android tablets. The tablets include web-browsing, games, ebook, social networking, and HD video and music. Prices range from $99.99 to $349.99. The Archos 28 and 32 are slated for release this month. Models 43, 70, and 101 are scheduled for later this fall. [Editor's Note: Archos' product names include a smaller adjacent number.]

Sharper Image Literati

Once a common occupant in malls throughout the US, Sharper Image has fallen on tough times — filing for Chapter 11 bankruptcy in February of 2008. While the only thing that remains of the company is their website, that hasn’t prevented them from joining the ereader fray.

Resembling the Amazon Kindle, the Kobo-powered color ereader will launch at $160. Featuring a QWERTY keyboard below a 7-inch screen, the ereader lacks a web browser and application functionality, clearly putting it in the standalone ereader category. Expected to arrive in October, the Literati will be available from a number of retailers, including Best Buy, Bed, Bath & Beyond, JC Penney, Kohl’s and Macy’s.

Acer LumiRead

Trying to build upon their netbook success, Acer recently announced its LumiRead ereader device. Based on a 6-inch E Ink display, the LumiRead will feature a Kindle-style QWERTY keyboard below the screen. When combined with either the 3G or WI-FI models, the LumiRead’s Digital Living Network Alliance (DLNA) compliance makes the ereader capable of streaming music from Acer’s own clear.fi system and third-party streaming services. The LumiRead also includes a built-in web browser with a “Smart Download” feature, which allows the LumiRead to save local versions of web pages for reading later when the device is disconnected from the Internet.

The LumiRead will come with access to the Barnes & Nobles ebook store as well as Libri.de, Germany’s leading Internet book retailer. While no prices have been announced, rumors suggest the LumiRead will start shipping in October for around $316.

SigmaTek eReaders

Coming in a 5-inch and a 7-inch ereader, the devices from Sigmatek Computer both feature a TFT display capable of a 800×480 resolution. These devices offer multimedia features that include support for AVI, XviD, and MKV video, with MP3, WMA, FLAC, AAC, WAV, and OGG music formats.

From the start, these ereaders may be playing catch-up because the devices are not equipped with connectivity to any application or ebook store. Some may see this as an advantage because it means the ereaders will be open to grab EPUB, PDF and TXT files from anywhere. In stores in October, the 5-inch model will cost approximately $127 and the 7-inch approximately $153.

Other announcements from the world of ereaders

Following a similar deal with retailer Target, Staples will start selling Amazon’s Kindle in its stores this autumn. While expanding the number of channels for selling Kindle devices is key, according to Chris Brogan, Amazon’s willingness to port their Kindle application to other ereader platforms may become their most important channel.

According to an SEC filing by electronics manufacturer LG, they could be mass-producing 9.7-inch color and 9-inch flexible e-paper displays by the end of the year. According to an analyst at Forrester, the availability of flexible screens could greatly improve the durability of ereaders. While flexible ereaders from Skiff and Plastic Logic have failed in the past due to heavy pricing competition, a mass-produced display from LG could level the pricing playing field and bring about new ereader innovations.

Finally, as part of a unique, year-long Notre Dame study of ereaders, the university debuted their first class taught entirely using the Apple iPad. The iPad will replace the textbook previously used in assistant professor Corey Angst’s project management course. Members of the study are evaluating the iPad with the broader goal of designing an epublishing ecosystem