eReaders are so dead. Not.
It’s always interesting to see how the #2 eReader company is doing.
While analysts are projecting that Kindle might account for 10% or more of Amazon’s revenues soon, B&N provides us with this hard fact (courtesy ZDNet) -
Our overall NOOK business across devices, accessories, and additional content grew to over $250 million in comparable sales across retail at BN.com in Q4. That delivered close to 300% growth versus last year.
$250 million a quarter sounds like $1 billion a year to me. Of course, if you’d like to keep your head stuck in the sand you can point to seasonal changes and temporary jumps and price elasticity of demand (who cares it if applies or not – it sounds so cool and intelligent).
B&N is also claiming that it increased its market share in eBooks by 1 to 2 points in Q4 – and that it now has 26% to 27% market share. Not improbable given the success of Nook Color. It also said that it opened over 1 million Nook accounts in Q4 – across Nook Apps and Nook devices.
The big questions are -
- Is Kindle a $2 billion a year business already? Surely, if Nook is accounting for $250 million a quarter, then the Kindle must be accounting for a lot more.
- How long before Kindle becomes a $1 billion a quarter business?
- Does Nook have a shot at becoming a $1 billion a quarter business?
The bigger questions are -
- Aren’t dedicated reading devices supposed to be dead?
- But everyone says no one reads any more. Could Steve Jobs and the Google Guys be wrong?
- How the heck is B&N beating both Apple and Google in the eBook Wars?
Finally, the biggest question -
- When will people who don’t read stop predicting the future of reading and eReaders?
Haters gonna Hate. It’s a good thing they aren’t well-read enough to make cogent arguments.