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Aigo to Release RMB 499 E-Reader

Biannews, 4/29/11

At yesterday's International E-Book Industry Forum in Yangzhou, Jiangsu Province, Lei Jun, VP of Chinese consumer electronics company Beijing Huaqi (Aigo), revealed that the company will release a RMB 499 E-ink e-reader sometime later this year, half the price of the lowest-priced e-reader currently on the market.

Wang Bangjiang, vice president and general manager of the e-reader division at Chinese e-reader and handwriting input peripherals manufacturer Hanvon (002362.SZ), a company whose e-reader devices dominate the industry despite their consistently high prices, said that prices must be brought down to the lowest point possible for any product about to go onto the market, or around RMB 400-500, with additional revenue to be collected via value-added service fees.

Lei said that the mainland China e-reader market is currently sluggish, in part because prices are too high. While Lei was unable to quote an exact figure for profit margins from the RMB 499 e-reader, he said that profit would be driven by sales volume rather than price.

Keywords: Lei Jun consumer electronics hardware profit revenue Aigo Hanvon 002362.SZ Wang Bangjiang e-book pricing VAS

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