Electronic book disappeared under the impact of iPad

On the morning of May 7th, a long queue of 1,000 people stood outside the Apple store in Sanlitun, Beijing. Apple powder anxiously waited for the iPad 2 to be sold in China. Following the iPad’s sales of 15 million units worldwide, the iPad 2 launched a new sales frenzy with prices starting at 3,688 yuan. Even the yellow cattle party has come to the fore, and has jumped from the line to the store. Physical conflict. At the same time, Hanwang Technology, China’s e-book boss, faced another sad reality: During the first quarter of this year, the sales of Hanwang’s electronic paper books dropped drastically from 193,600 units in the previous quarter to 149,800 units; revenue decreased 50 percent year-on-year. %, loss reached 46.18 million yuan. The stock price also fell from the highest price of 175 yuan in May to 53 yuan today. In 11 months, the market value of Hanwang evaporated 12.4 billion yuan. On March 21, nine Hanwang executives collectively sold 1.2 million Hanwang shares and cashed in RMB 81.25 million. They were interpreted by the outside world as executives fleeing Hanwang collectively.

In fact, as the leading e-book industry leader in China, which accounts for more than 70% of the market share, is the only company that has established its revenue entirely on this product (83% of Hanwang’s revenue in 2010 came from sales of e-books). Since its introduction, the iPad has realized its impact on e-books and launched its own tablet Touch Pad in May last year. In the interview with Han Yingwang’s chairman Liu Yingjian in October last year, he also felt very “proud” for his early deployment. But what he did not expect was that in order to make way for the iPad 2, the first-generation iPad would cut its prices all the way in the Chinese market, and the WiFi version of the 16GB model plunged by 1,000 yuan, from the original 3,988 yuan to 2,888 yuan. When faced with an iPad that is not much higher than a single-function e-book and has a lot of features, the only option is to cut prices. The E-ink screen that was trapped in the upstream of the e-book was completely monopolized by Taiwan's Yuantai. Pure terminal manufacturers such as the Hanwang had almost no bargaining power and the price remained at a high price of 2,000 to 3,000 yuan. As a result, they were slow in the price war. Caused poor shipping.

The situation is further worsening. It is reported that Apple is developing a new hybrid display that can automatically switch between a full-color screen and a low-power E-ink black-and-white screen. This allows the unique advantages of the “Eye-free, long-reading” eBook. Also included by the tablet. The e-book terminal industry is almost doomed to defeat under the ferocious impact of the iPad.

But it is worth noting that, under the iPad's price offensive, the Kindle was not vulnerable, but quickly followed up, launching the new Kindle at a price of $114 - $25 less than the current lowest price Kindle. Electronic reader. The reason why the Kindle can quickly cut prices is not only because the new Kindle compensates for price reductions by adding screen ads, but also because the Kindle relies on Amazon’s powerful content platform and has been relying on profitable content to subsidize the terminal. At the end of last year, Amazon’s e-book sales even exceeded for the first time. Paper book. Therefore, for the e-book industry, the operation of high-quality book content is the core competitiveness, and the e-book terminal is just an irreplaceable channel.

Hanwang does not want to be a Kindle. Liu Yingjian established the "three-year terminal, three-year platform, and three-year service" strategy as early as in 2008, and put the revenue on the terminal into the construction of the content platform, Hanwang Book City. Currently, the employees of Hanwang responsible for content resources work have achieved More than 300 people. This time, Liu Yingjian felt painstakingly and remarked that "If the bookstore can't do it, Hanwang Technology will have no future." He hopes that Hanwang Book City will increase its support for e-book downloads in addition to tablet computers and mobile phones. Notebook download support. It can be seen that the dream of the platform built by Hanwang, once successful, can throw off the dependence on e-book as a single terminal channel. But transforming content operations from a pure hardware manufacturer is a more difficult path. Although Hanwang Book City claimed to have established cooperation with 256 publishers, 166 publications, and 70 newspapers, it also connected with Shanda Clouds Bookstore and Founder Apabi. However, its content is both thin and light. Because bookstores and publishers use profit sharing in a collaborative model, publishers are concerned that content licensing risks impacting the sales of traditional paper books, and are therefore reluctant to fake quality content. Lack of control over quality content, Hanwang's Kindle dream can only be passive water.

The thinking of the other two platforms may be more correct. One is that Shanda Literature relies on China's largest original literary base to create the "Cloud Book City," and the other is Taobao.com's Taohua.net has recently launched "Taobao Book City." They all have content operations as the core. It is worth noting that Shanda is an entertainment giant that spans online games, film and television, literature, and many other businesses. Taohua.com is positioned as “a leading digital content trading platform in China” and provides video, documents, and e-books. Various forms of digital content, including online novels, music, and pictures. Both companies have far more dreams than digital publishing represented by the Kindle. In fact, on the Internet, books are not the only form of reading, not even the main form. As one of the industry insiders said, it is an article, a story, a PPT, a microblog, a period that occupies people’s time. Excerpts, a magazine, a video... All sorts of fragmented reading. Perhaps, it does not need to be entangled in how to put traditional dishes on the Internet. It would make more sense to integrate a set of dishes that meet the tastes of the Internet.

Blade Fuse

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