Lower Nook Tablet Prices To Take On Kindle Fire's Success
February 22, 2012

Lower Nook Tablet Prices To Take On Kindle Fire’s Success

With 16GB of memory and higher resolution screen, the Barnes & Noble Nook Tablet appeared to be a worthy competitor to Amazon´s Kindle Fire but it hasn´t taken off with users as the company had hoped. The most likely cause is was its $249 price point, versus Kindle Fire´s $199 entry price.

Barnes & Noble announced today that it would sell lower-priced Nook Tablet device with 8GB of memory for $199, the same price and memory size as the Kindle Fire. In addition, the price of the Nook Color is being dropped to $169 from $199.

Revenue from Nook e-readers and its digital catalog rose 38 percent to $542 million. That includes the actual selling prices for e-books, rather than the commission received on selling them, as well as all deferred e-reader device revenue, AP reports.

Barnes & Noble estimates it has a 27 to 30 percent share of the e-book market in the United States and has been investing heavily in the e-reader market. Its digital catalog sales rose 38 percent last year t to $542 million. That includes the actual selling prices for e-books, rather than the commission received on selling them, as well as all deferred e-reader device revenue.

In-store revenue grew as well by 2.8 percent.“In the third quarter, our traffic and sales in stores were the highest we´ve seen in five years,” Barnes & Noble´s chief executive, William Lynch, said in a call with investors.

“Our juvenile business and our toys and games department both drove significant double-digit increases, due in large part to the execution of our new merchandising strategies.”

Buoying physical sales was the closing of a primary rival, Borders that liquidated its inventory last year. The company is in the midst of transforming itself from a brick-and-mortar bookseller model to one supported by hardware and digital sales.

The big question on investor and consumer minds is if the company can survive in the long-term with incredibly strong competition from Amazon on all fronts.

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