Taiwan-based electrophoretic display (EPD) maker E Ink Holdings (EIH) expects monthly revenues in November and December to exceed NT$3 billion (US$98.37 million) on strong year-end holiday sales.

The e-book reader market is looking rosy with China-based vendor Hanvon Technology expecting to ship over one million e-book readers in 2011 and speculation about Sony returning to the e-book reader market in Japan.

Although the education market for e-book readers is just taking off, demand in the gift and consumer markets remains strong. With stimulation from price-cut promotions, overall sales of e-book readers are expected to exceed 10 million units in 2010.

Sales of e-book readers are usually strong in the year-end holiday shopping season, and the sales figures for November to December will determine whether E Ink can reach its sales goal for the year.

Market rumors have resurfaced recently indicating that Sony will return to e-book reader market in Japan. Sony was the first to commercialize EPD by launching e-book readers, and the Japan-based vendor has the longest work relationship with E Ink.

With demand from the Europe and US markets for the year-end holiday shopping season, E Ink's revenues in October increased over 30% sequentially to NT$2.77 billion, and revenues from the EPD product lines reaching two-third of its total revenues. Market sources expect E Ink's revenues in the fourth quarter of 2010 to come close to NT$9 billion.