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Sony's E-Reader Shortage and the Digital Book Battle

Published: Wednesday, 18 Nov 2009 | 4:25 PM ET
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By: Julia Boorstin
CNBC Correspondent

Huge demand is every consumer products-maker's fantasy; the nightmare is when shortages from high demand results in shortages that drive consumers to your rivals. That's exactly what could happen to Sony [SNE  Loading...      ()   ], which is now warning it may not be able to fill all the orders for its e-reader in time for the holidays.

A visit to the sonystyle.com site finds that the high-end "Reader Daily Edition," which sells for $399 will ship Dec. 18 through Jan 8th. The bad news: "actual delivery date cannot be guaranteed."

All those shoppers wanting to buy a present to put under the Christmas tree will surely be tempted to look elsewhere. Competition is heating up in the e-book market, and Amazon.com's Kindle [AMZN  Loading...      ()   ] is hoping to defend its territory as the industry leader — it has some 60 percent of marketshare. Barnes & Noble [BKS  Loading...      ()   ] recently announced its new reader called the "Nook," which you can pre-order by December 18th for guaranteed Dec 25th delivery. Amazon's Kindle, which now retails for $259 is in stock and ready to ship.

Sony does offer the least expensive e-book option, the "Sony Digital Reader Pocket Edition" for $199, which is already in stock. But the fact that the highest-end device, the fancy "touch" edition isn't going to be readily available, will put it at a real disadvantage during the crucial holiday season.

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