iRex, a spin-off from an e-ink research group at Phillips that developed the screen technology used by eBook readers, is positioning itself to contend more readily in the e-reader market, writes the New York Times.
Amazon's Kindle and Sony's eReader are still the largest players in the US. But unlike other eReader vendors, which go directly after consumers, iRex focuses almost exclusively on B2B clients.
Doing so was a strategic decision aimed to jumpstart the business, according to the company's CEO Hans Brons, explaining that the price point of first generation eReaders was simply too high for consumers.
iRex's eReaders have so far managed to corner the market for Electronic Flight Bags used by private pilots. Today, it is also looking into the textbook market and electronic newspapers, though the company is still focusing more on professionals than on the consumer market.
iRex's Digital Reader 1000 devices let users take notes directly on the screen. The company is working on developing touchscreen models as well. In comparison, the Kindle DX lacks easy-to-use note-taking features, making it less useful in a school setting.
The company recently announced its plan to fully-commercialize full-color readers, though it is still struggling with the problem that colors might reduce screen brightness.
iRex is negotiating with a number of newspaper companies looking to sell readers with eReader technology. It is also working with a number of European newspapers, and the Washington Post and USA Today are available through iRex, but the company has not disclosed information on any new deals in the US.
It is also providing publishers with a full range services to get their books onto the iRex platform, though iRex itself is not looking into starting its own store.
Kindle and Amazon's eBook store is not available in Europe, where iRex has its headquarters and its strongest presence. If it manages to gather enough publishers around its platform and set up a store of its own, the company may find itself in a better position to challenge Amazon's Kindle.
On Thursday Google and Amazon announced plans to avail more books to mobile devices, substantially increasing the number of e-books available for reading on-the-go.
In May, it was reported that a number of big-screen e-readers are due to become available in the next year, including one from News Corp. and another from Hearst, while Amazon introduced a larger version of the Kindle meant for reading larger-format content (e.g., newspapers).
Earlier this month, California Governor Arnold Schwarzenegger expressed his intention to phase out school textbooks and replace them with online learning material — an effort that, if successful, may present a growth opportunity for companies like iRex that prefer to focus on institutions rather than mass market.
