2nd UPDATE: Sharp To Dive Into E-Book Market With "iPad Made In Japan"

(Adds executive comments, details on Sharp's plans, industry background) By Juro Osawa and Daisuke Wakabayashi TOKYO (Dow Jones)--Sharp Corp. (6753.TO) said Tuesday it plans to enter the electronic-book market with a new tablet-like device it hopes will be the "iPad made in Japan." Sharp said it is already in discussions with U.S. mobile carrier Verizon Wireless to bring the device and its own content distribution format to the U.S. Sharp joins an crowded field of companies looking to tap into the popularity of Apple Inc.'s (AAPL) iPad, which has largely pioneered the market for tablet-like devices. In late May, Acer Inc. (2353.TW), the world's No. 2 personal computer maker, unveiled its first e-reader and touchscreen tablet computer. Sharp's Japanese rival, Toshiba Corp. (6502.TO), last month unveiled a touch-screen tablet computer that doubles as an e-reader. Sharp plans to officially unveil its new multi-function tablet device around September. The company is also promoting its next-generation format for distributing e-books and other content that it says will better handle Japanese text and more easily incorporate video and audio. Sharp said the new platform will allow a single item of content to be viewed in the same way across smart phones, computers and televisions. Sharp plans to start the content distribution service in Japan by the end of this year. "The idea is to offer an iPad made in Japan," said Masami Ohbatake, head of Sharp's information and communication systems business. But Sharp and other Japanese latecomers to the U.S. will face the challenge of winning customers in a market where many users are already comfortable and familiar with Apple's and other existing platforms. They will also start from scratch, learning to navigate through a myriad of new business models and unfamiliar business partners. Sharp executives declined to say how far along the talks are with Verizon Wireless, which is jointly owned by Verizon Communications Inc. (VZ) and the U.K.'s Vodafone Group PLC (VOD). Nor did Sharp give details of the type of business model it will use in the U.S. But the executives said the company will try to tap demand for a more capable platform for sophisticated content, such as that produced by magazines combining text with various multimedia content. "We don't think the iPad is the final word," said Hiroyuki Nakamura, a manager in charge of Sharp's electronic publishing business. "There's still room to create a new market in the U.S.," he said. Sharp showed off two devices at Tuesday's press conference. The smaller of the two resembles an extra-large smartphone, with a 5.5-inch screen. The other, larger device resembles Apple's iPad in scale and comes with a 10.8-inch screen. The electronics maker didn't reveal any information on the pricing of the devices. "It won't be easy for Sharp in the U.S. market," said Mizuho Investors Securities analyst Nobuo Kurahashi. Even if Sharp's platform is the most suitable for some sophisticated new multimedia content, content providers in the U.S. may be inclined to choose already widespread platforms such as the iPad from recognized brands, he said. "And in the meantime, the iPad and other existing devices will continue to update their platforms" to better respond to changing demand, he added. -By Juro Osawa, Dow Jones Newswires, and Daisuke Wakabayashi, The Wall Street Journal; 813-6269-2789; daisuke.wakabayashi@wsj.com juro.osawa@dowjones.com (END) Dow Jones Newswires July 20, 2010 08:09 ET (12:09 GMT)