Pandigital Plunging Into E-Readers With Two-Pronged Strategy
Pandigital is plunging into the e-reader market with a two-pronged strategy in which it will field LCD- and electrophoretic display (EPD)-based models, retailers told us. Best known for its digital photo frames, Pandigital’s PRD07T20WBL1 Novel e-reader ($199) is expected to hit retail shelves around June 10, featuring a seven-inch color LCD with 800x600 resolution, 220 nits brightness and WiFi for connecting to Barnes & Noble’s eBookstore. Assembled by Foxconn, the Android-based Novel e-reader contains an 800 MHz Samsung Arm-11 processor, 1 GB of internal memory and an SD slot for storage of up to 32 GB. Novel contains 1,600-milliampere lithium ion battery with a six-hour run time, Pandigital Assistant Vice President Jason Topel told us in an interview.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
Pandigital’s push also will likely bring its e-reader into uncharted retail territory for the category. While major CE chains like Best Buy are expected to carry it, other chains better known for fashion and home decor than electronics will likely join the category, Topel told us. Topel declined to identify the retailers, but Pandigital sells digital photo frames through Kohl’s, Bed Bath & Beyond and Macy’s, among others. Kohl’s already markets Aluratek’s five-inch EPD-based Libre eBook Reader Pro ($189) that’s packaged with 100 free ebooks. The Novel will be marketed with black, pink and red protective cases ($29) and six colors of skins ($19). On the software side, Novel will feature word and global search, a night mode, photo slide shows and gallery, and playback of WAV, MP3 and AAC music files,
As Pandigital navigates new distribution channels for the Novel e-reader, it also will be among the first companies to sell both LCD and EPD-based models, retailers said. Topel declined to comment on EPD product plans. The EPD e-reader, which uses E-Ink’s technology, sports a six-inch display and will hit retail by mid-summer, dealers said. While the LCD-based Novel will likely have a $179 street price, the EPD model will carry a $229 suggested retail and $199 street price, retailers said.
Pandigital’s decision to field models with two different display technologies appears partly fueled by its belief that there will be a shortage of EPD panels this year. E-Ink’s parent Prime View International has production capacity for 6 million panels, but the industry thinks there will be demand for 9-11 million units this year, Topel said. Prime View’s capacity, however, will be supplemented by that of affiliate Hydis, which is converting some LCD lines to EPD, Sri Peruvemba, vice president of marketing, told us. Prime View also has an option to buy EPD substrates from Chi Mei Innolux’s fifth-generation (5G) plant for 10-inch and up displays, Perumvemba said.
LG Display has been supplying EPD modules to “several” E-ink customers for two years, Peruvemba said. “Together we can easily meet market demand for this year,” Peruvemba said. It’s “unlikely there will be any shortage” of capacity available in addition to Prime View’s own factory, he said. “The reality is that EPD panels cost more to manufacture and the LCD provides consumers with as many features as possible,” Topel said. “It’s a matter of consumers voting what they prefer and I'm betting that LCDs will win."
As Pandigital readies the Novel, annual shipments growth of its core digital photo frames will be flat with a year ago at 2.2 million units, Topel said. Retail prices plunged 40 percent in 2009 and will likely dip only 2-5 percent this year, he said. Pandigital’s revenue dropped to $130 million in 2009 from $194 million a year earlier amid the price declines, but the company is forecasting 12 percent growth this year, CEO Dean Finnegan told the Contra Costa Times recently. Driving the increase in revenue will be e-readers, which could account for 50 percent of Pandigital’s sales this year, Topel said. Pandigital has 64 employees.
New touch-screen models will join Pandigital’s $180 Photo Mail LED Digital Photo Frame, Topel said. Photo Mail has AT&T’s 3G service and is packaged with the ability to send 300 photos over the connection to the photo frame. Once the allotment is exhausted, another 100 deliveries costs $10 and there are options for 400 ($30) and 700 ($50) photos. Pandigital also is weighing adding to its line a photo scanner/converter capable of processing 8x10-inch prints. The device was sold through QVC during the holiday selling season and may be revived, Topel said.
Walgreen’s also is testing sales of Pandigital’s digital greeting cards that feature a 1.44-inch LCD with 110x80 resolution, he said. The cards, which are designed for birthdays, holidays and other events, are priced in a three pack ($29) or separately ($9.99-$12.99). Walgreen’s is selling single cards, Topel said. Bartel’s Drugs also is merchandising the greeting cards, he said. Pandigital also found its portable photo printer containing Zink Imaging’s Zero Ink technology to be a “season product,” but plans to continue selling it, Topel said. The printer uses Zink paper with embedded yellow, magenta and cyan dye crystals that are activated when heat is applied. Pandigital formed an alliance with Zink late last year and shipped the portable printer in limited distribution in Q4.