The world’s largest e-reader display manufacturer posted record high results last quarter, and declared that e-reader devices are “recession-proof” in the run up to the holiday season.
E-Ink Holdings, which produces the displays used in 90 percent of the world’s e-readers, has reported growth of 20.6 percent from the second quarter, hitting $74.5 million.
According to the Taipei Times this pushed net profits for the whole of the year to $174.3 million, meaning an 18.8 percent increase from the same point last year. This meant the firm notched up record earnings of $0.161 (NT$4.86) per share.
Chairman Scott Liu said that the figures show that growth will continue in the run up to Christmas.
This is because he believes that, in times of hardship, people return to more traditional entertainment like reading. So with the global economy set to implode, it seems that by Christmas 2012 people could resort to bashing rocks together for fun, with any hopes of an iPad 2 in their stocking forcibly vanished.
Liu’s expectations for increased demand are based on accelerating demand for electronic paper displays and increased sales of LCD panels. Shipments of e-readers are expected to easily hit company predictions of between 25 million and 30 million units this year.
With one of E-Ink’s main customers, Amazon, releasing its Kindle Fire at relatively low prices, Liu reckons that there will be plenty of demand for a cheaper tablet alternative as cash-strapped consumers eye-up cheaper Christmas gifts.
While shipments for LCD panels were modest last month, Liu believes that a competitive pricing strategy from Amazon will see this increase rapidly.