Pew: E-Reader Use Tops Tablet PC

Pew’s internet research arm says that e-reader adoption has outpaced tablet PCs. The share of adults who  own e-readers in now 12%, up from 6% last November. Only 8% of adults use tablet PCs.

The news would seem to be good for Amazon (NASDAQ: AMZN), which makes the Kindle. The device has three-quarters of the e-reader market, according to several estimates. The other company which benefits from the trend is troubled retailer Barnes & Noble (NYSE: BKS), maker of the Nook e-reader. The chain is in a race to move content online as sales in its bricks-and-mortar stores erode

The reason e-readers may do so well is that they are usually less expensive than tablet PCs. On the other hand, they only can deliver books onto an electronic device. That is a simple application most people can understand and use. Tablet PCs like the Apple (NASDAQ: AAPL) iPad have thousand of potential uses which can be daunting.

The Pew data raises the issue of whether the predictions that tablet PCs will run the next generation of consumer devices into question. It at least has to give pause to those who forecast the inexorable rise of the tablet.

One theory about the Achilles Heel of tablets is that they are just large smartphones. Many applications do not need a large screen. Tablets are considered portable, but clearly are not compared to devices people can put into their pockets. E-readers, with their single application, are less suited as day-to-day tethers to the outside world. Their use can be described as “occasional” and not essential.

Tablet marketers may find that the world is divided into two in a way that is a disadvantage to them. The smartphone may be more than adequate as the primary device people use to communicate, entertain themselves, and gather information. For all other applications from reading to gaming consumers may rather use dedicated technology.

Douglas A. McIntyre