E Ink Holdings Profit From Robust Kindle Sales during Xmas

Taipei, Jan. 5, 2011 (CENS)—Robust market for Amazon Kindles in the Christmas shopping season is expected to drive sales for e-paper maker E Ink Holdings Inc.

The component maker is projected to post revenue for December 2010 exceed the better-than-expected NT$3.27 billion (US$109 million at US$1:NT$30) it had a month earlier. Also, the company's revenue for the fourth quarter 2010 is estimated to grow 70% from a quarter earlier, with gross margin for the same quarter projected at 33%, higher than the 31% of a quarter earlier.

Media reported that an estimated eight million Kindles were shipped worldwide throughout 2010, 60% more than previous forecasts. In 2009 alone, Amazon was said to have sold 2.4 million Kindles.

In the December 2010 shopping season, an estimated 1.6 million Kindles were shipped, nearing rival iPad shipments in that month.

Industry executives forecast the e-book market to be bright into 2011. E Ink Chairman Scott Liu felt the sale volume will double to 20 million worldwide in 2011 from 2010.

Some market consulting firms put the 2011 volume at 22 million, spiking from 2010's estimated 10.8 million, due to price slumps and increased acceptances at schools.

Some institutional investors believe the books selling below US$50 will hit their stride in 2011 and free books may even be on sale by the end of the year, helping stimulate demand.