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Thursday, December 1, 2011

Costly Kindle fight hurting Barnes & Noble

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The battle for Middle Earth has, er . . . sorry. (Watched all three uncut HD Lord of the Rings the other night and can't get it out of my head. Let me start anew.)

The hardware e-wars are in full bloom, with gloves off as Amazon leverages its muscle by lowering its Kindle Fire price to a mere $199.00. That has really turned up the heat on Barnes and Noble, which has essentially bet its future on the success of the Nook. The Kindle Fire is cool, I admit, and I nearly bought one, but then read an interesting comparison with the Nook (which turns out is  better e-reader for the money. Click here to read that comparison.)

The effort and cost to market the Nook against Amazon has cost B&N substantially, even though product sales rose 85% to 220 million for the fiscal second quarter. Not too shabby, and a good predictor of where we are heading.

Read the full article here, which I recommend if you are interested in this sort of thing.

--tps

2 comments:

Anonymous said...

Hovering over the fight is the ghost of Beta-Max.

And the winner of that competition, VHS.

Remember them?

How long will Nook and Fire fight before both are on the scrap heap in the dustbin of history?

TMW Man

Anonymous said...

Despite the Nook being an (arguably) better product, it looks like Fire has the edge on the competition in terms of sales:

http://www.bloomberg.com/news/2011-12-02/kindle-fire-ranks-as-top-ipad-challenger-ihs.html?cmpid=yhoo