Google took another bite at the hardware apple with the announcement Wednesday of the Nexus Seven tablet. The tablet, very wisely, is not looking to compete with Apple’s iPad – the indisputable leader — but rather the smaller, cheaper tablets from Amazon and Barnes & Noble. Outside of the iPad monolith, the Kindle Fire and Nook Color have been the most competitive entrants (albeit modestly) since Apple created the market in 2010.
Barnes & Noble cut its Nook sales forecast for this year and shocked investors by saying it was considering a sale of the electronic reader and tablet business, sending its shares down sharply. The bookseller has been banking on the Nook for growth, so news that holiday sales of the basic touchscreen e-reader were disappointing raised investors’ fears that Barnes & Noble was struggling to keep up with Amazon.com’s Kindle. “They’re going to have to raise capital for Nook if they want to stay viable,” said Morningstar analyst Pete Wahlstrom.
Let the low-end tablet wars begin. Barnes & Noble unveiled a Nook-branded tablet on Monday, the company’s answer to Amazon.com’s recently announced Kindle Fire. At $249, the 7-inch Nook tablet is a bit pricier than the $199 Fire, but Barnes & Noble is betting that consumers will pay the extra $50 for the device because it offers faster processing speeds and 16 gigabytes of storage space compared to the Amazon tablet’s 8 gigabytes. Both devices hit shelves next week. Barnes & Noble, which operates a chain of 700 U.S. bookstores, also lowered the price on its Nook e-book devices in an effort to take on Amazon’s line of Kindle e-readers, which were recently reduced in price.
Barnes & Noble sent out invites on Monday to a Nook-related event coming up on November 7. Most tech watchers expect the company to use the occasion to unveil a new version of its Android-powered Nook Color tablet e-reader, which could sport a better screen and upgraded hardware.
In an interview with Reuters, the head of HP’s PC business Todd Bradley gave the throngs of people who lined up outside stores to snap up discontinued and deeply discounted TouchPads hope that the company wouldn’t abandon them, saying the tablet could be resurrected. This, as the TouchPad was on track to become the second-best selling tablet of all time behind Apple’s iPad.
But there is already a bit of a backlash, and a new awareness that the world wide (open) web may compare favorably to the walled gardens available on the iPad and other tablets.
Some see e-readers as the poor cousin to more glamorous tablets, but that may soon be about to change. Billionaire media mogul John Malone, whose Liberty Media owns DirecTV Group and the QVC shopping channel, may be interested in buying the Barnes & Noble chain specifically for its Nook e-reader, according to a person familiar with the company’s thinking behind the deal.
Research in Motion shares neared a two-year low after the BlackBerry maker said it has recalled about 1,000 of its Playbook tablets due to an operating system bug. Most of the devices affected remain in the distribution channel and haven’t yet been sold to customers, the Canadian company said in a statement posted on CrackBerry.com.