Move over, Amazon Kindle. Best Buy and Verizon have unveiled a new e-book reader Wednesday that will sell for $399 and is built by iRex Technologies. The reader like the Kindle would be able to purchase content over the 3G network, and will be sold in about 100 of Best Buy’s locations by October.
Barnes and Noble’s e-bookstore would be used to supply the device with content, the companies said.
Verizon stands to benefit from this new device as it would receive a portion of the revenue to pay for the use of bandwidth by these devices over the network. Best Buy benefits from a device that is a direct revenue stream for them: the company is so serious about e-readers that it is specifically training its associates on how to sell the devices.
The two companies may be getting on the bandwagon at the right time. After only selling around a million of these devices in 2008, over five million are expected to be sold this year according to research firm iSuppli. Much of this increase has to do with the success of the Kindle, which has continued to sell very well by all accounts.
Regardless, the issue of price still looms large. As we reported here on Technologizer at the beginning of this month, e-readers are still too expensive for most consumers. At $400, iRex’s new reader seems to be more than twice what consumers would consider paying for a device.
These companies still need to address this issue if they plan to continue growing sales of these devices well into the future.