Hasta La Gadget!

Barnes & Noble has again slashed NOOK prices in the UK, following its admission last month that it is clearing stock of the ereading tablets after deciding to instead license out the brand in future rather than build its own models. The NOOK HD will be offered from £99 for the 8GB model (or £129 for the 16GB version), £30 cheaper than B&N’s last promotion.

As for the NOOK HD+, the bigger version of the Android slate with a 9-inch display, that also gets a price cut. The 16GB model is £149, again £30 cheaper than the last promotion (and £80 less than the original RRP), while the 32GB version is £179.

Barnes & Noble is calling this round of discounting a “temporary” one, though given the troubles the NOOK range is facing we’d be very surprised if more price cuts didn’t follow on afterwards. The NOOK Simple Touch with GlowLight is on sale a £69 in the UK, with the non-illuminated version even cheaper (and out of stock at B&N’s official UK store).

NOOK is feeling the pressure from Amazon’s Kindle Fire and Apple’s iPad/iPad mini, forcing drastic measures. The company saw sales of the division – covering hardware, content, and accessories – plummet 34-percent in the most recent financial quarter, and as a result opted to split the range.

In future, B&N will continue to produce the e-paper based NOOK models itself, but will leave NOOK Android tablets to third-party manufactures. The NOOK brand itself will be licensed out, as the company tries to slim its development costs.

NOOK HD gets another price slash as B&N tries to shed stock is written by Chris Davies & originally posted on SlashGear.
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Barnes and Noble has not had an easy go of it. The brick-and-mortar stalwart has seen its revenues and profits steeply decline as we’ve entered the age of the e-book. In fact, profits haven’t just shrunk; they’ve disappeared. During the fourth quarter of fiscal year 2013, the company suffered a net loss of $118.6 million, down significantly from the already poor showing it posted in 2012 when it lost $56.9 million in Q4. For the year, that put Barnes and Noble’s losses at $154.8 million — more than double what it lost in 2012. Revenues have dropped both at retail outlets and its Nook digital business by $105 million and $56 million, respectively year-over-year. For its e-reader and ebook arm, that represents a 34 percent drop from Q4 2012. The bad news there is that device sales have declined dramatically and, while content sales were up for the year, in the fourth quarter they fell by 8.9 percent. Barnes and Noble attributes the year-over-year fall in sales to be attributed to the lack of blockbuster titles. In Q4 2012 revenues were boosted by juggernauts like Fifty Shades of Grey and The Hunger Games.

Going forward Barnes and Noble wants to significantly cut its losses on the struggling Nook business. To do that the company will be partnering with an as yet unnamed third party to manufacture and co-brand its tablet line. The Nook line of e-readers will continue to be designed and built in-house, but the retailer will be looking beyond its Manhattan office walls for help with the flailing Nook HD line. Existing products will be supported for the foreseeable future, however, so don’t go tossing your Robert Brunner-designed slate in the trash just yet. If you’d like more detail, check out the PR after the break.

Filed under: Tablets

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Barnes & Noble has announced that it’s going to leave manufacturing of its Color tablet line up to third party manufacturers.

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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 and Noble has been quietly erasing all mentions of its Nook for PC and Mac, but now we have the first official confirmation that both are no more. An official statement, reported by The Digital Reader, says that the company is no longer supporting software for Windows 2000/XP/Vista or Mac OS X, and is directing users to switch to Nook for Web in its place. That, or you could always help prop up the company’s brick-and-mortar operations by purchasing some of these.

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Source: The Digital Reader