Kobo Aura H2O: The Waterproof eBook Reader Revolutionizing the Market
The cat has been out of the bag for a while now after several leaks: The Kobo Aura H2O will hit the market at 179 euros with a 6.8-inch E-Ink Carta display and a waterproof case. So far, so good. It was only logical for the Canadians to give the successful Aura HD a successor. After all, the eBook reader with its then-unusual screen size stood alone in a wide field, and many digital readers had long since demanded a move away from the typical 6-inch reading devices.
Despite the success of the Kobo Aura HD, one thing cannot be denied: it is a high-priced device targeting a specific audience. Essentially, Kobo was catering to a niche within another niche. Shortly after its launch, the HD device’s share of total Kobo eBook reader sales was at 27 percent. Certainly not a bad figure, but it also means that the remaining 73 percent were in the 6-inch segment.
Therefore, bringing only the Aura H2O to the market is quite a bold move. After all, the 6.8-inch model must also compete against numerous 6-inch competitors, which are mostly significantly cheaper. Of course, the Kobo devices in that format shouldn’t be forgotten: Aura and Glo are still being sold and, one or two years after their initial launch, continue to offer solid technology. Thanks to regularly updated software, they also remain current in terms of features.
Focusing on Price Over Performance
However, it should be noted that while the lighting of both eReaders is good, it no longer ranks among the best. The E-Ink Pearl displays used are also slowly but surely in need of an upgrade.
Kobo seems to want to take a different approach with the 6-inch models, as both models are currently (and have been for some time) available for 99 euros. This directly places Kobo in the price battle started by the Tolino Alliance with the Shine. Last year, Kobo was apparently caught off guard twice in Germany: first when Amazon launched the Kindle Paperwhite with modern technology, which according to Kobo’s CEO wasn’t meant for mass production yet, and second when the Tolino Shine quickly gained market share with its low entry price and the aggressive marketing strategy of the booksellers.
The book retail alliance proved during the last holiday season that it doesn’t always need the latest technology to be successful. As various promotions (like the Shell promotion for the Kindle Paperwhite) show, it seems that for many potential buyers, eBook readers sell primarily on price. Pearl or Carta? Most buyers probably don’t even know the difference, nor do they have the chance to compare side by side. Considering how minimal the advantages are, for instance with the Pocketbook Ultra, the question also arises whether the additional costs in the fiercely contested 6-inch segment are justified at all.
One can certainly be curious whether this tactic will work out and if Kobo can sustain the steady growth seen in recent years. For well-informed digital readers, there’s a high-end model with a correspondingly high entry price, while the average consumer—who is primarily familiar with the eBook market through names like Kindle and Tolino—is targeted with lower prices using the Kobo Glo and Aura.
Other Manufacturers Taking a Similar Approach
At least one other major eBook reader manufacturer might be following a similar path: Amazon. The retail giant quietly upgraded the Kindle Paperwhite with additional storage a few weeks ago and temporarily labeled the revamped model as the 2014 version on its US site. Although this name has since disappeared (following media coverage), it could hint that the online retailer plans to keep the already highly successful eBook reader (at a reduced price of 109 euros) in its lineup while likely offering a premium model, the Kindle Ice Wine, at a higher price. Additionally, there are indications that Amazon may be planning changes in an even lower-priced segment.
It’s anyone’s guess what the Tolino alliance will do. The Tolino Vision debuted in the first half of 2014 and likely won’t be updated in time for the Frankfurt Book Fair. Things might look different with the Tolino Shine, which celebrates its one-year anniversary (post-semiannual update) in October. Usually, eBook reader models in the market are replaced after about 12 months. Whether that will be the case here remains to be seen. However, the Tolino tablets are expected to receive an upgrade. After the recent price reduction, which was initially announced as a limited-time offer but, as anticipated, continues to run, the Tolino Alliance has denied that it plans to exit the tablet business. The Frankfurt Book Fair could once again serve as a platform for potential new announcements, as it did last year.
Every year, leading up to the holiday season, I find myself repeating the same thing: it’s going to be exciting. The increasingly competitive eBook reader market has already claimed its first casualty with Sony. A competitive and future-proof strategy is definitely crucial to continue attracting customers. Simply going with the flow is no longer sufficient.