Barnes and Noble Pulls Back from EBook Reader Sales
Published on: 25th Jun 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
USA based Barnes and Noble has admitted defeat in its attempt to develop a competitor to Amazon's Android based Kindle and will be stopping production of its Nook branded colour ebook readers.
However, the software will continue to be developed, as will the black-and-white basic ebook readers.
Announcing the decision in its financial results, Barnes and Noble said that sales within its Nook division fell by more than a third over the year to US$108 million for the last quarter. Device sales declined during the fourth quarter due to lower selling volumes.
Nook EBITDA losses were $177 million for the fourth quarter, which include an additional $133 million of inventory charges as the company adopted more aggressive promotional strategies given the shift in strategic direction.
As a result, while the company still plans to keep the Nook ebook brand, it will be licensing it to 3rd-party manufacturers instead of building devices itself.
At the same time, the company intends to continue to build its digital catalog, adding thousands of eBooks every week, and launching new Nook Apps.
"We are taking big steps to reduce the losses in the NOOK segment, as we move to a partner-centric model in tablets and reduce overhead costs." said William Lynch, Chief Executive Officer of Barnes & Noble.