Barnes & Noble has thrown in the towel in the tablet game, conceding to iPads and Kindles. Consumers were no longer embracing their tablet and sales were plunging so B&N decided the best course was to stop producing them. No doubt, Apple and Amazon are formidable competition and technology leader does not describe the core of B&N, a brick and mortar company. Try as they might, consumers chose other devices.
And while the announcement calls for the en of their color tablets, B&N will still continue to build and sell their e-readers. I am not sure I agree with that decision. Amazon and Apple have built both the infrastructure and the device that consumers prefer. The decision to keep Nook e-readers going is only delaying the inevitable. Inevitably the B&N app will be an agnostic entry to downloading books, regardless of the device. Or perhaps a closer partnership to Microsoft is in order if the decision is to embrace a proprietary library with Microsoft branded products.
Sad too that the Nook did not save the B&N retail business. "If Nook hadn’t done so badly, the poorly performing retail segment —
which consists of both bricks-and-mortar stores and BN.com — would be
getting more attention this morning: Retail revenues fell 10 percent for
the quarter, to $948 million, and fell 5.9 percent for the year, to
$4.6 billion." More stores are closing than opening with the only bright spot being their college bookstores.
So what is next for Barnes & Noble? I would profoundly miss their presence in the retail landscape. While I buy digital books, I still also buy hard copies too. B&N represents a place of discovery and entertainment. I believe that while leaving the Nook business is the right move, diversifying merchandise in their retail stores to keep customers coming remains essential. I want to see B&N survive and prosper.
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