Massive Nook Tablet Price Drop – Will Kindle Fire Price Drop Follow?

The Kindle Fire and the Nook Tablet 8 GB have been at $199 for a long time. The Nook Tablet 16 GB has been at $249 while the Google Nexus 7 came in at $209 for the 8 GB version.

Today, B&N changed the equation drastically with massive price cuts on Nook Tablets:

  1. A $50 price cut on 16 GB Nook Tablet brings it to $199 (down from $249). So, for $199, you now get 16 GB of in-built memory (plus an SD Card). Suddenly the 16 GB Nook Tablet is a far more dangerous Kindle Fire competitor.
  2. A $20 price cut on 8 GB Nook Tablet brings it to $179 (down from $199). This was the model competing with the Kindle Fire and this forces Amazon to cut the price of the Kindle Fire to $179 or $169.
  3. Nook Color is down to $149. This should put further pressure on eInk Kindle and eInk Nook sales. It’s 2 years old now (from first release) but the Nook Color holds up very well.

Galaxy Nexus 7 forcing Nook Tablet Price Drops?

Since the Galaxy Nexus 7 came out, B&N has done the following to make Nook Tablet and Nook Color competitive:

  1. A temporary $50 gift card with the $249 Nook Tablet. This was a one or two week offer that ended around a week ago.
  2. 5 free Disney books with Nook Tablet. This offer replaced the $50 gift card (and apparently didn’t work very well, given the new price drop).
  3. Now this permanent $50 price cut.

It’s pretty obvious that the release of the Google Nexus 7 has forced B&N to lower the price of the Nook Tablet. Hooray Competition!

The big questions are – What will Amazon do? Is there a new Nook Tablet on the way?

Is there a Nook Tablet 2 on the way?

There might be an additional reason for the massive price cuts on Nook Tablets – A new Nook Tablet 2.

Rumors suggest that B&N will release Nook Tablet 2 in October. That it will have new improved screens and that it will support new types of media content, including content never before seen on Tablets.

These massive price cuts suggest B&N is clearing out stock. It certainly suggests that there might be a Nook Tablet 2 announcement in September or October and that the new Nook Tablet 2 will ship in October or November.

What will Amazon do? Is Kindle Fire 2 imminent?

The 16 GB Nook Tablet being available at $199 puts huge pressure on Kindle Fire.

Firstly, 16 GB is double the memory. Secondly, Kindle Fire memory can’t be expanded while Nook Tablet memory can be. Thirdly, both are direct competitors in the High-Value Tablet market and even people who wouldn’t have bought a Nook Tablet would want Kindle Fire prices to be adjusted so that they can feel they are getting as good a bargain.

Amazon must do one or more of the following -

  1. Drop the price of the Kindle Fire to $169 or $179. To avoid losing sales to Nook Tablet 16 GB and Nook Tablet 8 GB.
  2. Drop the price of refurbished Kindle Fires to $139 or $149. To avoid losing sales to Nook Color.
  3. Announce the Kindle Fire 2 earlier than it would have liked. To give future Tablet owners something to wait for.

I’d expect a response within a day or two.

Competition is Good for Us

By end of 2012 we might have the following High-Value Tablets in the market -

  1. Kindle Fire 2 in $199 to $249 price range. Rumored to be multiple models.
  2. Nook Tablet 2 in $199 to $249 price range. Might be multiple models.
  3. Galaxy Nexus 7 in $199 to $259 range.
  4. iPod Mini. Rumored to be at $299.
  5. Windows 8 Tablets.

It will be a lot of options and there will be brutal competition. Which is great for us customers. A few years ago the only option was a $499 to $799 iPad. Now, with $149 Nook Colors and $199 Kindle Fires and $199 Nook Tablets and $209 Nexus 7s, the technology can reach a lot more people. That in turn brings in more companies and more developers and leads to cheaper Tablets and better software.

Google Nexus 7 Vs. B&N Nook Tablet

Google Nexus 7 and Barnes & Noble Nook Tablet successfully address a market segment (sub $199 Tablets) that was ignored by Apple. We always suspected that there was a market for low-cost tablets, but everyone else was busy competing against the iPad. Now, Nook Color and Nook Tablet and Kindle Fire and Galaxy Nexus 7 have blown away the illusion that ‘there is no Tablet market, there is only an iPad market’.

The introduction of these two tablets and the Kindle Fire signifies a mini revolution. Barnes & Noble was the first vendor to successfully introduce a low-cost tablet (something for which it seems to never get credit) and Google Nexus 7 is the first Tablet that is a fully functional, low-cost tablet with advanced hardware capabilities and full Android app access.

It makes sense to do a Google Nexus 7 vs B&N Nook Tablet comparison as they are, in our opinion, the two most advanced 7″ Tablets (they also are the two latest). We get a chance to see where they stand with respect to each other.

While you might be tempted to decide that the Google Nexus 7 is the better among these two options, there are certain considerations that make B&N Nook Tablet a worthy competitor for certain groups of users.

Barnes & Noble Nook Tablet

Important Specifications:

  • Processor: 1 GHz TI OMAP4 Dual Core Processor
  • RAM: 512 MB/1 GB (Two models)
  • Built-in Memory: 8 GB/16 GB
  • Expandable Memory: MicroSD Slot, Up to 32 GB
  • Price: $199/ $249 USD. There was recently a $50 off coupon on the 16 GB $259 one and there might be more such offers.
  • Dimensions:  5″ x 0.48″ x 8.1″ (W x D x H)
  • Weight: 14.1 Ounces
  • Display resolution: 1024 x 600 pixels
  • Wi-Fi: Built-in, IEEE 802.11 b/g/n
  • Speakers: Mono speakers
  • Camera/Microphone: No/Yes
  • Headphone jack: 3.5 mm standard headphone jack

Striking advantages of the Nook Tablet:

  1. If you are already a regular user of the Barnes & Noble book store and your application is primarily to read eBooks with occasional usage of tablet features, you might want to invest in a reader-and-tablet device manufactured by B&N.
  2. Nook Tablet is a boon for eBook readers who primarily want a reading tablet and also want to use the same device for other uses. One can buy and read books from the Barnes & Noble store, listen to music from Pandora, watch movies from Hulu/Netflix, play games, access important apps from the B&N app repository to extend the device functionalities. B&N is focused on reading and if you want a Tablet focused on reading then Nook Tablet is still the joint top option (tied with Nexus 7 for reading in our opinion).
  3. The expandable memory slot (up to 32 GB) is something that everyone wants and both Google and Amazon have ignored in their respective tablets. But B&N Nook Tablet got this right and many people have bought this tablet exclusively for the expandable memory option. To Google & Amazon: There are times when people don’t want to, or can’t connect to the Internet. This is perhaps the biggest advantage of the B&N Nook Tablet after the fact that it’s the best choice for B&N customers.
  4. B&N’s Nook Tablet is easier to understand and use. Nexus 7 is a bit of an adventure (and not necessarily always in the good sense) when it comes to the user interface.
  5. The Nook Tablet has one of the best anti-reflective screens among all the eReader/tablet devices. The company seems to know how much a reader is affected due to glare. Nexus 7 does a good job but not as good as Nook Tablet.
  6. The battery life of the Nook Tablet is slightly better than what is available with the Google Nexus 7. We can attest to the fact that playing games on Nexus 7 results in battery life times less than claimed. B&N’s Nook Tablet holds up better.
  7. Though Android app usage is regulated/restricted, B&N still has a good collection of all the important apps required by tablet users. Some of them come preloaded with the device. Barnes & Noble has an exhaustive collection of eBooks, magazines and it has partnered with the top content providers for audio/video streaming (Netflix, Hulu Plus, Pandora, etc).
  8. If you have problems you can call up B&N customer service or visit a B&N store and get help.

In summary, if you’re a B&N customer or you want a ‘Reading Tablet’ or you want more memory (via SD Card or via the 16 GB model), then waiting for the next Nook Tablet (and there definitely will be a next sale) is a good option.

In stark contrast, B&N is not a good choice if you want ‘the default Android Experience’, want all the apps from the Android Play Store, or want a Tablet that can handle the latest 3D tablet games at great speeds.

Striking limitations of the Nook Tablet:

  1. Barnes & Noble Nook Tablet does not use stock Android – it uses a customized version of it. Hence, only the apps made available for this device (by B&N) are available to people. Users don’t have access to the Google Play app store. Users also don’t have access to other Play offerings like movies and music.
  2. People cannot use the Nook Tablet to read books/magazines from Amazon/Sony/Kobo/Google or other ecosystems. The device is tightly locked to the Barnes & Noble book store.
  3. The device does not have GPS (location/directions), Camera (video chat), Bluetooth (sharing files, syncing with mobile).
  4. Lower screen resolution (when compared to Google Nexus 7). The device is not made to play high-end 3D games. Please Note: It does super well with the general Angry Birds and Cut the Rope type of games. It just won’t run Infinity Blade (not available anyways) as well as Nexus 7 (not sure if Nexus 7 has Infinity Blade either).
  5. The device is not available outside the US. This is a big flaw that B&N need to fix. It reduces sales and thus reduces market size for developers and thus leads to fewer apps being added to the store. That in turn makes Nook Tablet less competitive. Fixing this would perhaps double sales and help make the app ecosystem a lot more vibrant.
  6. Out of the 5 GB/16GB of available space in the built-in memory, 1 GB/12GB is reserved for Nook store content. That leaves very little for storing general purpose files. But the expandable memory slot is always available. Please Note: You can go to a B&N store and have the hard drive repartitioned. However, B&N should have been more generous with how much memory space it allocated to non B&N content.

Some of these limitations might be deal breakers for you.

Google Nexus 7 Tablet

Important specifications:

  • Processor: Quad-Core Tegra 3 Processor
  • RAM: 1GB/1GB (Two models)
  • Built-in Memory: 8 GB/16 GB
  • Expandable Memory: Not available.
  • Price: $200/ $249 USD (may vary depending on where you buy)
  • Dimensions: 4.72″ x 0.41″ x 7.81″ (W x D x H)
  • Weight: 12 Ounces
  • Display resolution: 1280 x 800 pixels, HD display
  • Wi-Fi: IEEE 802.11 b/g/n
  • Speakers: Yes
  • Camera/Microphone: Yes (1.2 MP)/ Yes
  • Headphone jack: Yes
  • Android version: 4.1, Jelly Bean (latest)
  • Bluetooth/NFC: Available
  • Additional features: Accelerometer, Magnetometer, Gyroscope

Striking advantages of Google Nexus 7 Tablet:

  1. High capacity processor, 1 GB RAM even in the entry-level model. Please Note: If you get Nook Tablet on sale then you still get 1 GB RAM. However, the processor on the Nexus 7 is still much better.
  2. Excellent hardware specifications – Value for money. Google Nexus 7 is really outstanding value for money.
  3. Front facing camera for video chat, Google+ hangouts. A big advantage if you video chat.
  4. Latest Open 4.1 Jelly Bean Android OS. Full access to all Android apps and Google app store. This is a big advantage if you want the latest OS, the full Google Play Store, or want an open device.
  5. Higher screen resolution, can display HD movies and other HD content with better clarity.
  6. NFC (Near Field Communications) and Bluetooth to transfer files/pairing with other devices. This is something that might be very important down the line.
  7. Easier access to and integrated with all Google services like Gmail, Google Chrome, Google Talk, Google Docs, Google Cloud storage, etc. If this is important to you, then Google Nexus 7 clearly does a better job here.
  8. GPS + Google Maps to get directions while driving. Since the device is WiFi only this might not make the most sense. However, it’s a good feature.
  9. Users can access Google Play, Amazon, Barnes & Noble, Sony and other ecosystems (through apps). A big advantage.
  10. Available in US, Canada, Australia, UK. Expected to be available in more countries around the world shortly. Another big advantage.
  11. Good choice for playing 3D, Simulation based high-tech games.
  12. Light weight, thinner, easy to hold & carry. The Nook Tablet feels better in your hand. However, the textured grip of the Nexus 7 and the lighter weight and the thinness make it a better device for holding long-term.
  13. Includes Google Now which is a predictive personalized helper for identifying the nearest restaurants, bus stations, etc.
  14. Comes bundled with a voice recognition app.

From this list it should be clear that for the majority of people the Google Nexus 7 is going to be the better choice.

Striking limitations of Google Nexus 7 Tablet:

  1. No expandable memory option (Micro SD slot). Not everyone is comfortable with cloud storage, cloud streaming, cloud everything.
  2. Even though Google Nexus 7 tablet users can access B&N ecosystem through an app, the experience does not equal the native integration of B&N store with the Nook Tablet.
  3. The battery capacity is slightly lower than the Nook Tablet. This will not matter much to you unless battery life is a big requirement.
  4. The screen is relatively glare-inducing. This is a definite disadvantage.
  5. The user interface is not very intuitive.
  6. It’s a device optimized for gaming. If you aren’t into gaming then it makes sense to wait and see what Kindle Fire 2 and Nook Tablet 2 look like.

There are not very many limitations. It’s just a beautiful and solid device.

Google Nexus 7 vs B&N Nook Tablet Decision Tree

  1. If you can’t wait and must get a Tablet Now – Choose B&N Nook Tablet if you’re a B&N customer or must have an SD card or are looking for a ‘Reading Tablet’. Please wait for it to be on sale.
  2. If you can’t wait and must get a Tablet Now – Choose Google Nexus 7 for most cases.
  3. If you are willing to wait till August/September – See what Kindle Fire 2 is like.
  4. If you are willing to wait till October/November – See what Nook Tablet 2 and Kindle Fire 2 are like.

In most cases you will not go wrong if you buy the Google Nexus 7. In our opinion it’ll hold up well even against Kindle Fire 2 and Nook Tablet 2. B&N is promising a new LCD technology in the Nook Tablet 2 and content never available before on Tablets. If they deliver, then Nook Tablet 2 might be the best Tablet option for Holiday Season 2012. However, at the moment it doesn’t seem like anyone will be able to beat Galaxy Nexus 7 (unless an iPad Mini comes out in September/October).

Would you pay $300 million for a slice of the #2 eBook & eReader business?

Microsoft just did. Thanks to Roger Knights for the heads up.

Bloomberg reports that Microsoft invested $300 million to get a 17.6% share in a new B&N subsidiary which combines B&N’s Nook digital reader business with its college bookstore business. The companies are calling it a ‘strategic partnership’ in the B&N + Microsoft Press Release - A strategic partnership to accelerate the transition to e-reading.

Microsoft gets 17.6% while B&N keeps 82.4%. The exact shares were decided after a game of hopscotch in kilts.

This is hugely important to both the ebook and eReader markets (the investment, not the game of hopscoth). It might also be hugely important to the high value Tablet market. An almost doubling in B&N’s share price certainly suggests the market thinks so (of course, that probably means the venture is going to inadvertently create a new monkey virus that wipes out humanity).

Even analysts are chiming in with words of encouragement -

The partnership with Microsoft could give the Nook the kind of content and global expansion to make it a bigger player in the tablet business, said Michael Glickstein, chief investment officer with G Asset Management LLC.

That kind of partnership makes the Nook business more valuable, Glickstein said.

No kidding. Nook is suddenly a Microsoft backed business and connections to Gigantically Profitable Software Makers are far more fetching than comparisons to brick and mortar anything.

Microsoft’s Investment in B&N’s Nook Business is Hugely Important

Let’s see why this could be a huge, huge thing (you could just skip to the second list, the one after this one, for why it’s important for Kindle owners and book lovers):

  1. It values B&N’s ebook and college bookstore business at $1.7 billion. The second biggest ebook business is a billion dollar business (or nearabouts). Still think this is discounted by a factor of 3 or more.
  2. B&N’s new Nook Inc. subsidiary will develop a Nook eReader application for Windows 8. That app will probably get default eReader App placement in the Windows 8 App Store. There are already signs that B&N is becoming increasingly important in ebooks (a stronger #2). This will cement Nook as the #2 ebook business. Perhaps even give Amazon a run for its money.
  3. The hundreds of questions about B&N’s stability and how that would affect Nook’s future just got put to rest. Which means that the biggest competitive advantage Amazon had (stability) just got eliminated. This will force Amazon to innovate Kindle and Kindle Tablet more. It will give B&N more confidence to keep making Nook Tablets and Nook eReaders.
  4. Microsoft has a sharp eye for billion dollar businesses. It has 9+ such businesses of its own and you can be sure it thinks highly of Nook to actually invest in it. I’d make a serious bet that over the course of the next 10 years this 18% share would end up being much more important to Microsoft than Microsoft’s share in Facebook (which, to be fair, is in the very low single digits i.e. 1.6%).
  5. Microsoft and B&N settled their patent litigation. More stability for Nook Inc. 

Let’s jump ahead to the really important stuff. The impact on readers, on ereaders, and on tablets. 

Hugely Important to Readers and eReaders

Much more interesting to us Kindle owners and book lovers is why this ‘strategic investment’ by Microsoft is hugely important for books and ebooks and eReaders:

  1. B&N claims 30% market share in eBooks. Combine that with it probably becoming the default eReading App on Windows 8 and suddenly Amazon is looking over it shoulder.
  2. A separate Nook & College Bookstores businesses (Nook Inc.) isn’t saddled with the legacy brick and mortar bookstores. Nook revenue grew 38% to $542 million in the last quarter. This is a seriously big business. Revenue for the fiscal year ending in April 2012 is projected to be over $1.5 billion. If Nook Inc. were unprofitable and run by a college dropout it would be considered worth $10 billion (unless it also stole people’s personal information – then it’d be $25 billion).
  3. B&N has been innovating on both the eReader front (Nook with Glow Light) and the Tablet front (the $199 Nook Tablet). This $300 million investment from Microsoft means it has more security and can keep innovating. That pushes Amazon to improve Kindle and Kindle Tablet more.
  4. Windows 8 means hundreds of millions of users. The importance of being the default Windows 8 App can’t be understated. Much of the Microsoft Anti-Trust lawsuits revolved around IE and Media Player being defaults shipped with Windows. B&N’s Nook eReader App gets that privilege and advantage now. The huge and undefeatable power of the default.
  5. The inclusion of College Bookstores is being touted as important. It might be. It supposedly puts B&N’s new Nook Inc. in position to challenge for the eTextbook market.
  6. Amazon, like any other company, has always needed a serious competitor to keep it honest and hungry. While B&N has done a good job there’s always been doubt around how long it would be around. The double measures of a Microsoft investment and the creation of a fast-growing subsidiary suggest that B&N, the strong #2 player in ebooks and eReaders, will stick around for a while.
  7. In the best case, this move might actually help accelerate the growth of ebooks. At worst, it will ensure that ebook growth doesn’t come to a standstill. You can bet that both B&N and Amazon will now make really, really good reading applications for Windows 8.

Amazon has shown that it improves the Kindle most when it has a strong competitor breathing down its neck. It’s also shown that it is quick to learn from innovations B&N makes. It took its sweet time to release the Kindle Fire – However, once Nook Color validated the market for high value tablets Amazon did release Kindle Fire.

The investment by Microsoft in B&N’s Nook Inc. will revitalize the Kindle team and energize B&N’s Nook Team. In one swift stroke Microsoft has breathed life into the competition in eBooks and eReaders and High Value Tablets.

Hugely Important to High Value Tablets

There are some very interesting questions about the future of Nook Tablets and Kindle Fire Tablets that come up -

  1. Firstly, as the analyst points out above, this gives B&N the strategic knowhow to go international with Nook Tablet.
  2. That would force Amazon to go international with Kindle Fire.
  3. Secondly, it raises the possibility of a Windows 8 powered Nook Tablet. Surely, now that it owns 18% of B&N’s Nook Inc., Microsoft will push for Windows 8 based Nook Tablets.
  4. B&N might be offered the inside track and might very well move to Windows 8 Nook Tablets. Android lacks one huge thing Windows 8 promises – a connection to all the desktop software that Windows 8 will have. It makes little sense for phones – but a lot of sense for 7″ Tablets.
  5. It would force Amazon to also move to Windows 8. A Kindle Fire Android App Store just wouldn’t be able to compete with the Windows 8 App Store in the long run.
  6. Thirdly, the investment and the Nook Inc. subsidiary means that Nook Tablet won’t have to pay for the sins of the brick and mortar bookstores. Nook Inc. gets a clean sheet. It’s a business growing at 38% per year (approximately) and it won’t be Border’ized.
  7. Fourthly, Microsoft will absolutely provide a lot of business connections and relationships. Think better ties with manufacturers, intelligence from Microsoft divisions, and lots of other potential benefits. Wouldn’t be a surprise to see Nokia phones coming with the Nook App as the default ebooks app.
  8. Fifthly, given that B&N’s Nook Tablet is the second best-selling Android Tablet and has the potential to atleast stem slightly the tide of migration to Apple devices, there is very strong motivation for Microsoft to keep strengthening Nook Tablet. Even if Nook Tablet sticks with Android – It’s still one less customer lost to the Apple family. A customer who would then proceed to buy iEverything and MicrosoftNothing.

Overall, the Nook Tablet part might be the real reason Microsoft has invested in B&N’s Nook Inc. Saying it’s all about ebooks might be a convenient cover. Just the way that Amazon claimed Kindle was all about ebooks and reading and then proceeded to create the real Kindle Killer, the Kindle Fire.

In the Final Analysis

Barnes and Noble, the #2 ebook seller, the #2 eReader seller, the #2 High Value Tablet seller, is suddenly a lot stronger.

Amazon suddenly has very strong and stable competition.

Microsoft has made an investment which could be strategic in multiple ways. It might very well be that Microsoft sees three billion dollar businesses – Nook eReaders & eBooks, eTextbooks, Nook Tablets.

This 17.6% investment (for just $300 million) is about a million times smarter than the billions Microsoft is burning up on its badly strategized search engine business. On that note, it’s time for Microsoft to buy a certain small and sweet search engine (that rhymes with Luck) and unleash two horses in the search engine wars.

Lighted Nook available for preorder (Nook GlowLight)

A Lighted Nook is now available for preorder. I’d say that makes Lighted Nook (aka Nook GlowLight) the best eReader available (until Amazon announces Lighted Kindle).

The key details:

  1. It’s $139 and ships on May 1st. Only available in the US.
  2. It has a light which makes it perfect for bedtime reading.
  3. You can switch off the light for perfect daylight reading.
  4. GlowLight features – soft glow optimized for low light reading, illuminates screen evenly, adjusts brightness with a touch.
  5. Built-in anti-glare screen delivers paper like experience in bright sunshine.
  6. $139.
  7. It’s built into the Nook Simple Touch so you get a Light and the touchscreen.
  8. Supposedly the lighted Nook ever and with ‘seamless’ page turns.

Here’s an image from B&N:

Nook Lighted eReader with GlowLight

Nook beats Kindle to the punch

Funnily enough, just last week, TechCrunch reported that the up-coming Kindle may be equipped with the illuminating new add-on.  Looks like B&N is one step ahead of Amazon on this bright idea.

The front-lit Nook essentially emits a light from its screen, allowing readers to view eBooks in the dark..

Will front-light equipped eReaders be a big deal?

Let’s see.

  1. If you love ‘reading’ then yes – you will love having a built-in adjustable light.
  2. If you’re a non-reader who hates eReaders, then you’ll switch your stance from ‘eReaders suck because they don’t have a backlight’ to ‘eReaders suck because they aren’t Hipster enough and how can I be seen in Williamsburg with one’. 

With e-Ink addressing the issue of glare and the front-light addressing the issue of reading in the dark, readers will be able to read virtually anywhere, in any conditions. This is a very big deal.

Also, tip of the hat to B&N for not giving up and continuing to compete with Kindle and pushing things ahead. This is a brilliant and brilliantly sneaky move. Amazon’s PR department starts building up curiosity for a potential lighted Kindle. B&N says – We prioritize readers over tech blogs. We’ll just let people preorder.

Lighted Nook – An in-depth look

Let’s take a more illuminating look, shall we?

  1. Have to admit GlowLight is very impressive. My favorite feature is that the brightness is adjustable and that it’s built-in and easy to turn on and off.
  2. 1 month of reading with GlowLight on. That’s hard to believe – If true, that makes this a superstar feature. This is based on half an hour of daily reading.
  3. 2 months of reading with GlowLight off. This is same as Nook Simple Touch. This is based on half an hour of daily reading.
  4. It apparently illuminates the screen evenly. Not sure how it does that.
  5. BestText technology with super crisp words. Does that mean it’s better than the Nook Touch and Kindle Touch. Will be interesting to find out.
  6. Weighs less than 7 ounces. Good. Exact Weight: 6.5 ounces.
  7. Dimensions of – 6.5 inches height, 5.0 inches width, 0.47″ depth.
  8. Screen resolution is 600 by 800 which isn’t super impressive. It’s a 6″ touchscreen with 16-level grayscale.
  9. Screen Protector and Power Adapter included. The inclusion of an anti-glare screen protector is great. Much rather have this than a $99 version that cuts corners.
  10. Wonder what the processor is. Would be nice if they used a faster processor.
  11. 7 Font Sizes and 6 styles. 6 styles is good. Kindle Touch has 3. Wonder how many the Lighted Kindle Touch will have.
  12. It’s funny how B&N advertises – No Annoying Ads.
  13. Free WiFi in all B&N stores and at 24,000 AT&T stores.
  14. Support for Public Library Books.
  15. 2 GB memory. 750 MB is reserved for B&N content. 
  16. Memory can be added via microSD card.

Quite frankly, the Lighted Nook’s GlowLight feature is a lot more impressive than I would have thought. The 4 reasons:

  1. 1 month battery life with GlowLight on.
  2. Lighting is distributed all over the screen.
  3. Easy on and off and adjustment of the brightness. So day reading and night reading shifts are quick.
  4. The $139 price is pretty decent.

It’s a good solid feature and while it’s perhaps 2 years too late – better late than never.

Also, kudos to B&N for keeping the Kindle vs Nook eReader fight going when they could so easily ignore readers and focus 100% on Nook Tablet and Nook Color which, from all signs, are selling very well and are selling better than Nook eReaders.

Kindle Touch vs Nook Touch is going to be replaced by Lighted Nook vs Lighted Kindle. It seems B&N has won a minor battle by having Lighted Nook preorders available first.

Kindle vs Nook 2 starts this week

This week, the Kindle finally gets a worthy competitor (we can hope, as it will push Amazon to lower prices and add features). The Kindle vs Nook 2 comparison/contest will hopefully revive the eReader landscape – which has been as boring as Two and a Half Men sans Mr. Tiger Blood.

Some rough predictions:

Monday, May 23rd: Amazon strengthens up its defences against Nook 2

Amazon makes 2-3 moves to reinforce the Kindle’s charms to current and prospective Kindle owners.

Probably more free book offers than usual. Perhaps a date for when Library Lending will arrive. Amazon will wait until it knows the details of Nook 2 before launching a full attack – However, if information leaks out today, it might move early.

Tuesday, May 24th: B&N finally reveals Nook 2.

Haven’t been this excited since Dairy Queen introduced a new flavor (or was it Baskin Robbins).

  1. Features most likely to be part of Nook 2 – $150 price, improved lending, eInk Pearl screen with optimizations to make the screen contrast slightly better than Kindle 3′s screen contrast, touch using IR technology (the way it’s done in the new Sony Readers), text to speech (50% chance it makes its way in).
  2. Features most likely to be part of Nook 2 WiFi – $125 price.
  3. Slight possibility – B&N forsakes 3G totally and introduces only a WiFi model.
  4. 5% possibility – B&N blows Kindle 3 out of the water by introducing a Qualcomm Mirasol powered color eInk eReader.
  5. The most interesting possibility to me is B&N introducing a Nook for Kids. That would totally derail Amazon’s push into schools. It’s not inconceivable that B&N will release both a $150 Nook 2 and a $100 Nook for Kids. After Nook Color, it would be foolish to underestimate B&N’s capacity to surprise.

How will Amazon respond?

Amazon will probably make at least 2 big announcements on the 24th to deflect some of the attention away from Nook 2. If the 5% possibility turns out to be true (Nook 2 has a color eInk screen) then look out for some falling Kindle prices. If Nook 2 comes in at $150, or seems to offer more value for money than Kindle, then Amazon will probably do a $25 Kindle price-cut or offer a $25 gift card with the Kindle.

It’s unlikely that Amazon would have an answer for Nook for Kids.

Amazon probably has a clear-cut strategy and execution plan for responding to Nook 2 -

  1. A few features it has implemented but not introduced. It will definitely announce a few new features this week.
  2. The date for library book support and perhaps even a date for ePub support.
  3. A few new WhisperNet related services.
  4. Perhaps expansion of the Kindle App Store internationally and the introduction of free Internet browsing for all Kindle owners (not just those in the US). These two are especially likely if B&N does an international launch for Nook 2.
  5. A few special offers on bestsellers and perhaps even a few Living Social deals.
  6. Perhaps a subscription plan.
  7. Perhaps a Kindle+Prime subscription deal.

Amazon will probably announce 2 or 3 big things immediately if it feels Nook 2 is a real threat. If not, it might save them up to hand out over the course of the summer.

Wednesday & Thursday (May 25th and 26th) – Spy vs Spy

Time for B&N and Amazon to decide how they will fight the Kindle vs Nook 2 battle. To fathom out each other’s strategies and attack.

B&N will probably do a repeat of its ‘announce a month or two before release’ strategy with Nook 2. That gives Amazon ample time to respond. If it feels it’s been left behind technologically, it might prepone the Kindle 4 release to end of this year (from February 2012).

The real advantage B&N can get with Nook 2 is hardware/technology. In particular a touch screen and/or a new screen technology. While Amazon can match software improvements easily it will be stuck if B&N introduces one or more clear hardware advantages.

B&N might make some other moves – stronger tie-up with Google, a partnership with Apple, expansion of book lending. None of them would be game changers though. It’s hard to think of anything other than hardware improvements that could have huge impact – perhaps a subscription plan B&N introduces in partnership with Publishers.

Could B&N pull off something in the software space? Software is hardly its area of expertise – but you never know. Hardware wasn’t its area of expertise either and it managed to produce the best non-iPad tablet.

Rest of May 2011 – The Kindle vs Nook 2 battle is decided (in effect)

How strongly Amazon responds to Nook 2 will be a clear indicator of whether it sees Nook as an after-ran in the eReader market or whether Nook really has captured 23% to 25% of the eReader market (DigiTimes mentioned this figure).

If Amazon does not have a Kindle 4 slated for launch in October or November 2011, and there’s a high probability it doesn’t (since it’s probably waiting to release a color eInk based Kindle in Feb 2012), then we will see it respond to Nook 2 very, very agressively.

If B&N introduces a Nook for Kids then Amazon is likely to struggle mightily to respond. It’s ignored the student eReader market (school and college) and B&N might wrap up a large portion of that market even before Amazon can release something built for students.

2011 is going to be a great year to be an eReader owner – current or prospective.

Follow

Get every new post delivered to your Inbox.

Join 5,608 other followers