Hasta La Gadget!

Amazon has apparently dropped the price of its Kindle Fire HD ereader-tablet in what appears to be a response to Barnes & Noble’s NOOK HD cuts, dropping the 7-inch Android-based slate by as much as 15-percent in the US and UK. The price adjustment sees the 7-inch Kindle Fire HD come down to £139 in the UK (saving £20) for the 16GB model, and to $169 (saving $30) in the US, compared to the latest 7-inch NOOK HD at £129/$149 for the 16GB model.

In the US, Amazon lists the Kindle Fire HD change as a “limited time” offer, though it’s worth noting that B&N has used the same nomenclature for its own discounting. Our suspicion is that the cuts will last for roughly as long as the other company’s do, given the fierce competition between the two firms.

Despite Amazon’s changes, the NOOK HD is still the cheaper of the two. For a start, B&N offers an 8GB version, which is $129, and has no direct capacity equivalent in the Kindle Fire HD range. However, B&N’s motivations are very different to Amazon’s as well: the company admitted last month that it planned to clear its stock of existing NOOK HD/HD+ models and then in future license the brand to third-party tablet manufacturers, rather than make its own models.

Instead, B&N would focus solely on developing e-paper based ereaders, such as the SimpleTouch. NOOK sales overall in Q2 – including ereader hardware, software, and accessories – dropped 34-percent, with the company blaming a shortage of high-profile titles as well as waning hardware appeal.

It’s not the first time Amazon has shuffled Kindle pricing to ramp up pressure on B&N. Back in 2009 the retailer cut the second-gen Kindle after its rival launched the NOOK, on the assumption that ongoing content sales would offset any narrowing of hardware margins.

VIA Paul O’Brien

Amazon cuts Kindle Fire HD to ramp B&N NOOK HD pressure is written by Chris Davies & originally posted on SlashGear.
© 2005 – 2013, SlashGear. All right reserved.

Barnes & Noble reported its fiscal fourth quarter earnings this morning, and the financials make it clear that the company is still struggling to figure out how it fits into the larger digital reading ecosystem. All told, BN reported a quarterly net loss of $118.6 million (compared to $56.9 million from the year ago quarter) which works out to a loss of $2.11 per share on $1.3 billion in revenue.

Analysts weren’t expecting much going into this quarter (and BN’s own anemic guidance from Q3 didn’t inspire much confidence): the consensus according to Bloomberg was for the company to report a loss of $0.96 per share on $1.3 billion in revenue. They also predicted a 4% drop in annual revenue for the company, which was just about right on the money — the company reported $6.8 billion in revenue for fiscal 2013, as well as a corresponding loss of $154.8 million.

Ouch.

BN’s retail business didn’t look too hot this time around, as quarterly revenue was down 10% year-over-year to $948 million (though the company cites the strength of series like Hunger Games and Fifty Shades of Grey as inflating last year’s numbers). That may not be BN’s problem for too much longer though, as company founder Leonaro Riggio started openly opining on the notion of buying back the company’s 689 brick-and-mortar stores (not to mention bn.com) back in February. Should the transaction eventually come to pass — which is by no means a given — Barnes & Noble will effectively be left with its Nook Media business.

Meanwhile, Nook Media (which BN owns 78% of after you factor in Microsoft and Pearson’s stakes) continues to look like a real stinker this quarter. It reported a relatively scant $108 million in quarterly revenue, which represents a staggering 34% drop from the year-ago quarter.

The intensity of that dip is surprising, but not to some — some analysts have pegged the sales slump on the fact that Nook tablets lacked the productivity acumen and app access to compete with other low-cost devices. Barnes & Noble finally managed to fix that this past May by striking a deal with Google to fold Google Play Store access and a few stock Android applications like Gmail and Chrome into Nook tablets, while simultaneously trying to jump-start Nook sales by announcing slashed nook prices put in place for Fathers’ Day will stay in effect for the foreseeable future.

What is new is that Barnes and Noble is looking to open up the Nook brand to other OEMs itching to make their own tablets. The company will continue to offer its own first-party e-readers like the Simple Touch series as time goes on, but in a bid to minimize the risk inherent to churning out tablets in a crowded market, BN is leaving that work to third-party manufacturers. There’s no word yet on exactly when the company will officially kick off its so-called partnership program (though I suspect they’re already in talks with some OEMs), but it seems likely that the existing Nook HD and HD+ will be the last to bear BN’s fingerprints. Don’t expect them to disappear completely just yet though — they’ll be around at least through the holidays.

Barnes & Noble introduces NOOK Snaps.

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Word has it Microsoft is considering a $1 billion purchase of Nook Media LLC’s digital assets, which encompass its preferred units and leaves the rest – ebook and ereaders and such, that is. The information comes from the folks over at Tech Crunch, which says it has received an internal document on the matter. Also in the documentation is news that the Nook slate business will be discontinued by the end of next year.

In place of discontinuing the devices will reportedly be a new business model in which the company’s digital content will be offered via apps on partner devices. One must wonder, then, if the partner devices will be from Microsoft or something else entirely, though Tech Crunch says that its information doesn’t specify that bit, saying only that we’ll have to wait until next year when they’re launched to find out.

This isn’t the first time we’ve heard about the mixing of Barnes & Noble and Microsoft. As we reported back in April of last year, Microsoft invested $300 million in a partnership with B&N to form a subsidiary. Following that, in June the latter company publicly denied rumors that it would be launching a tablet with Windows RT, with the information having been provided from someone said to be an inside source.

This eventually lead up to the official announcement of Nook Media LLC as the subsidiary between the two companies, with Microsoft shelling out the initial $300 million and looking to gain the Nook app for Windows 8. As such, Microsoft’s alleged plans to make the purchase follow in line with what has already transpired, though the company – as well as Barnes & Noble – declined commenting on the matter.

[via Tech Crunch]

Microsoft reportedly considering Nook Media purchase is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

The Nook HD and HD+ got a great update late last night (via Engadget), as Barnes & Noble finally moved away from its closed and system-specific app and media ecosystem. The two Android tablets now offer Google Play, and new devices will ship with the app pre-loaded, while existing owners can get it via a software update over-the-air or via direct download.

Other changes with this update include the introduction of some stock Android apps, including Gmail, Maps and Chrome (which replaces the Nook’s existing web browser as the default option). Essentially, Barnes & Noble is turning the Nook HD line into a very cheap Android tablet play, and not in the limited way it was doing so before.

Where once the Nook brand was a reader first, with Android-powered full-color readers with some tablet functionality, now it looks like we’ll see Barnes & Noble embrace the tablet identity much more fully. Another sign that the book seller is banking on tablets as a much broader attempt at reaching customers is the fact that the Nook Tablet and Color don’t get the Play update, meaning we could see those left behind in terms of future hardware updates.

John took a look at the updated Nook HD+, and found it impressive, especially at $269, or a full $60 cheaper than the cheapest iPad (16GB Wi-Fi iPad mini). The problem, though, was summed up in John’s conclusion: the Nook HD+ is a great upgrade as a reader, but not necessarily a real tablet competitor. Opening up the broader Android software market place and its selection of tablet apps definitely helps to change that.

The Nook line could be the key to Barnes & Noble’s future, but right now it’s also a weight hanging around its neck, as slow sales of the Simple Touch e-reader prompted a fire sale to help move more HD+ inventory, and the Nook division lost cash in the most recent fiscal quarter. There’s still an opportunity for a cheap Android tablet to capture the hearts and minds of consumers, however, and Nook is now in a better position to capitalize on that now that its ecosystem wall has come down.