Kindle vs Nook thoughts 2010

It’s interesting that the Kindle now has to take on two different types of Nooks.

Here are some Kindle vs Nook thoughts keeping the whole Kindle vs Nook vs Nook Color context in mind.

Kindle vs Nook Thoughts 2010

  1. Kindle vs Nook is now the defining eReader comparison because Sony Readers are priced too high. Kindle 3 has to take on the Nook 1 which is more than a bit unfair.
  2. Nooks continue to sell because of ePub and library book support, more retail visibility and availability, and lending. Amazon is going to bring lending to Kindles by end 2010 but there’s little it can do about the other two factors.
  3. The theory that Nook might have stretched B&N too thin might have truth to it but it’s not like B&N had another option.
  4. Kindle vs Nook Color is an important comparison for casual and semi-casual readers.
  5. B&N is cutting sales in half (perhaps even by 75%) by painting Nook Color as just a reading tablet. The magicians at Nook Devs might save them by rooting it and allowing people to convert their Nook Color into an Android Tablet.
  6. For people who keep complaining about reading at night and the lack of a backlight on the Kindle the Nook Color is suddenly a great option.
  7. Nook Color’s price is very impressive. If iPad is really worth $499 then Nook Color is easily worth $399. Wonder how much of a loss B&N is taking on each Nook Color.
  8. B&N really needs a Nook 2 and Kindle really needs a Kindle Tablet.
  9. It’s strange that Amazon would add lending (which hardly anyone brings up) and leave out support for library books which always comes up.
  10. It might seem counter-intuitive but B&N would really, really benefit if they let in Kindle for Android. Perhaps they strike a deal with Amazon to get 10% of book revenue. It isn’t necessary though – even if they let Amazon keep the ebook revenue they will sell so many additional Nook Colors by providing an option of ebook readers that it’ll be well worth it.
  11. It’s interesting that the Kindle App has become a selling point for both iPad and Android tablets.

It’s so strange and at the same time it’s very true that adding Kindle for Android would increase Nook Color sales 50%. Open it up to be a Tablet and sales would double. Have to do a separate post about this. B&N is sitting on the largest reserve of tablet gold and instead it wants to mine for eReader silver.

Will the App Stores play a role?

Both the Kindle App Store and the Nook App Store (initially only for Nook Color) could play a vital role.

Indications are that neither will.

For Nook Color the App Store is the lifeline. Right now the Nook Color is the perfect tablet but it’s missing apps. You can read – However, having Netflix and some of the better apps would add so much to it.

For the Kindle there are two camps – Apps aren’t needed, Apps are needed. It seems the former camp is winning out so all we get are apps for in-between reading. Which is perfectly OK. People bought Kindles to read – not to see marvellous transformations – and they won’t mind if they miss out on some amazing things.

For the Nook Color – it’s not. There’s so much there that screams the device isn’t an eReader and B&N is curbing the device’s natural tendencies.

Here’s a snippet from Paul Graham’s essay on Tablets -

It has turned out to be a great thing that Apple tablets have accelerometers in them. Developers have used the accelerometer in ways Apple could never have imagined.

That’s the nature of platforms. The more versatile the tool, the less you can predict how people will use it. So tablet makers should be thinking: what else can we put in there? Not merely hardware, but software too. What else can we give developers access to? Give hackers an inch and they’ll take you a mile.

A perfect example of using the accelerometer in an amazingly impressive way is SleepCycle which uses the accelerometer to monitor your sleep cycles and wakes you up when you are in your light sleep phase.

It works – if you have an iPhone or iPad you really, really should try it. It’s actually magical – not marketing-magical.

There’s no way on earth Apple could have imagined that an app like SleepCycle could be conceived – let alone executed almost perfectly.

You have to give hackers that inch so they can create their masterpieces.

Kindle vs Nook – What will 2011 bring?

  1. If B&N can survive the burden its financial investments in Nook 1 and Nook Color have put on it, and make it through end 2011, it’ll be very well placed.
  2. Nook Color has the potential to sell 10 million units in 2011. It’s easily better value for money than iPad and if you are a casual reader it’s better value for money than Kindle 3 (though not Kindle WiFi).
  3. Amazon desperately needs a Color Kindle or a Kindle Tablet. This probably won’t be clear until B&N announces 3 million Nook Colors sold in mid 2011. At that point it might be too late.
  4. Nook Store continues to struggle – it’s just not as easy to use as the Kindle Store. B&N has done a decent job of reducing the book price difference between the two stores but the selection still needs to improve and the service and usability really, really needs to improve.
  5. Amazon has been complacent. It’s really hard to believe that if you look at all the improvements in Kindle 3. However, it’s 3 years since the Kindle 1 and we don’t have color or for that matter unbreakable screens or touchscreens. In its mastery of kaizen and incremental improvements it’s missing the big technological breakthrough that will transform Kindle into a must-have for every single person.
  6. Amazon’s dependency on eInk is probably its biggest weakness. If it doesn’t develop a Kindle using another technology soon it’ll be stuck.
  7. Amazon should try to buy B&N. It’s going to be a lot cheaper now – If Nook Color takes off the option might be gone.
  8. Is there something about almost-death that makes a company stronger? Is it just survivorship bias?

This post is getting too long and what I really want to write about is Nook Color. So that’s it for now.

Kindle 2.5 vs Nook 1.5, odious eReader comparisons

As the Kindle 3 and its eInk Pearl screen march onwards B&N and Sony aren’t sitting still.

B&N has released the Nook Color and yesterday released the Nook 1.5 software upgrade. Sony has cut the prices on its ‘we compete on quality, not price’ Sony Readers and is adding apps to iPhone and Android in December.

What significance do these moves have?

Let’s start by reviewing Nook’s multi-faceted moves attacking the Kindle.

Color Nook, Nook 1.5, and $100 Nook 1 as Nook takes on Kindle

The three big moves are Nook Color, Nook 1.5 upgrade, and the $100 Black Friday Nook Deal.

Is Nook 1.5 a worthy competitor to Kindle 3 and Kindle 2.5?

Sort of. Here are the updates in the Nook 1.5 software upgrade with my comments in italics -

  1. Automatically sync last page read across Nooks and Nook Apps. Kindle has had this for a long time.   
  2. Create and organize ‘shelves’. Matches the Kindle’s Folders feature.  
  3. Password protect your Nook and password protect purchases. The former matches a Kindle 3 feature which is also present in Kindle 2.5. The latter isn’t available for any Kindle and is a great feature.
  4. Faster page turns. It’s about time – will have to check if page turns are as fast as on Kindle 2.5.  
  5. Search books and documents easily. Again, it’s about time.

So 5 out of the 6 additions (counting the two different password protection features as separate additions) translate into Nook adding features already present in Kindle 2.5 and Kindle 3 and closing the gap a bit. The 6th feature (password protecting purchases) is a very good feature and something Kindle needs desperately.

Nook 1.5 update doesn’t make Nook better than Kindle 3 or even Kindle 2 – However, it closes the gap a bit.

Kindle 2.5 vs Nook 1.5 – Not Much has Changed

Nook adds Folders, makes page turns faster, and improves search. That’s probably balanced by Amazon adding Lending by end 2010 and beginning to trickle out Kindle Apps.

Nook adds syncing for last page read but WhisperNet syncs highlights and notes.

Nook does close the gap with its password protect feature for purchases. Amazon’s probably just happy to not impede the purchase process in any way.

The net result of B&N’s big, huge 1.5 upgrade is that it’s managed to reduce the gap between Nook 1 and Kindle marginally.

People are still going to pick B&N’s Nook for ePub support, library book support, in-store browsing at B&N stores, and for the mini-screen at the bottom. People are still going to pick the Kindle for text to speech, Kindle Store book prices, free Internet, great customer service, and the other Kindle advantages. Kindle 3 has the eInk Pearl screen and is much faster and much lighter and has better battery life and is going to get picked a lot more often than Nook 1 or Kindle 2.

$100 Nook 1 trumped by $89 Kindle 2

Not much to say here. Amazon always does this – spoils B&N’s November and December parties.

Nook Color – Odious Comparisons and B&N’s surprise star Tablet

Nook Color is an entirely different and surprising beast – B&N has either managed to combine the worst of the eReader and Tablet worlds or it has managed to craft something that straddles these worlds perfectly.

The Nook Color reviews so far are split – The more tech-savvy the person the more they feel Nook Color won’t work out. Which matches almost exactly the reaction to the first Kindle - book purists and tech experts hated it. It should give B&N hope that Nook Color has polarized opinions so strongly - Apple people and the tech intelligentsia are attacking it only because they feel threatened.

Kindle and Nook Color aren’t really competing except for a tiny intersection/overlap between regular readers and casual readers. In the narrow intersection of those two groups is a thin slice of readers who can’t decide whether an Android Tablet with a LCD screen is better for them or a dedicated eReader with an eInk Pearl screen.

Nook Color vs (Kindle Reading Apps + iPad/iPhone/Android smartphones)

The real competition is between Nook Color and the device that casual readers currently read on. To be more precise Nook Color is primarily competing with the iPhone+Kindle for iPhone combination and the Android Smartphone+ Kindle for Android combination.

Kindle’s advantage is that it is leading on nearly every platform. Nook Color’s advantage is that every casual reader who picks Nook Color gets locked into the Nook ecosystem.

It’s the strangest sort of war because it’s hard to pin down exactly who/which device is competing with what/which device.

Sony Reader tries to remind people it’s still around

Sony is making three moves of its own – Sony Reader Daily Edition ships November 26th, there are price cuts on Sony Reader 350 and 650, and Sony Reader apps for iPhone and Android launch in December.

Sony Reader Daily Edition – Did anyone know it was coming out?

There was a comment asking about it. That’s the only mention of the Daily Edition in the last 3-4 weeks.

Did you know it was available for preorder? That there’s a $50 price-cut and it’s $250 now?

Neither did I.

Sony hasn’t been paying attention to the US. It doesn’t take much effort to get the blogs and newspaper sites to write about an eReader – If eReaders that aren’t even in production can get buzz why not an eReader that is 3 days away from launch?

It’s disappointing because instead of forcing Amazon and B&N to innovate faster Sony is doing next to nothing.

Sony sticks to quality over price – Well, Actually

After a long speech on how its going to focus on quality over price Sony has cut the prices of the Sony Reader 650 and 350 by $30 each.

Why didn’t Sony release at these price points?

90% of people considering an eReader would have considered the touch-capable, eInk Pearl screen enriched, rather good-looking 350 and 650 if they had been $150 and $200 at launch.

Instead Sony priced itself out of the Kindle vs Nook vs Sony equation completely.

1 year and 9 months after Kindle for iPhone we get Sony Reader for iPhone

Kindle for iPhone was launched in March 2009 which itself was a bit late to tap into the iPhone casual reader market. Sony is going to launch Sony Reader apps for iPhone and Android in December 2010.

Think about it – We have the eReader Wars going on and Sony took 1 year and 9 months to tap into what is arguably the most important channel to reach casual readers.

It’s down to Kindle vs Nook

Sony can pretend it’s focusing on Europe or Atlantis or whatever market it likes – It’s doing nothing of consequence.

If you’re in love with the Sony Reader – it’s a good choice. It’s a beautiful eReader.

The only problem is that it’s made by a company that doesn’t seem to want to sell books or help people get books. Sony wants to get $150 for the Sony Reader 350 and then wash its hands off – No infrastructure like WhisperNet, no in-store features like B&N, and no reading apps for other platforms. On top of that Sony Reader Store’s book prices are terrible when compared to Kindle Store and Nook Store.

For all practical purposes Kindle vs Nook vs Sony Reader is down to Kindle vs Nook.

The twist is that by introducing Nook Color and not updating Nook 1 B&N has thrust Kindle vs Nook into some sort of strange space-time-eReader continuum where it’s unlikely you’ll ever be seriously considering more than one of Kindle and Nook Color and where the Nook 1 is trapped in the ‘previous generation eReader’ black hole.

Amazon needs a Color Kindle or a Kindle Tablet to compete with Nook Color and B&N needs to compete with the Kindle 3 by releasing a Nook 2 with an eInk Pearl screen.

Will Kindle stick to its reading focus?

Given that the Kindle 3 has, for the most part, focused on reading and stuck with eInk this might seem a strange question to ask.

However, consider the competition – Apple has spent most of the year painting the iPad as a viable eReader, Android Tablets are arriving (hopefully sometime in our lifetimes), technologies like Pixel Qi are looming, and Nook is shifting to a color screen model.

Add on that the Press is always happy to attack dedicated ereaders and the concept of a device dedicated to reading.

Almost everyone is attacking dedicated eReaders from the ‘color/can do more than read’ angle and it’s not out of the question that Amazon reconsiders its focus on reading. In fact, you could argue it’s already beginning to hedge its bets.

The warning signs that Amazon is losing its laser focus on reading

Well, there are actually quite a few -

  1. A full-fledged WebKit browser in the Kindle 3.
  2. Facebook and Twitter integration in the Kindle 2.5 upgrade.  
  3. That microphone must be put in with something in mind and it’s unlikely to be reading related.
  4. All 6 Apps in the Kindle App Store have been games. Nothing about font options or book categorization or book covers as screensavers - yet 6 games make it in.  
  5. TV ads contrasting Kindle WiFi with iPad. Why is Amazon suddenly bringing up the very comparison it has shunned all along?
  6. Amazon’s plans to open up an Android App Store. Perhaps it’s a precursor to a multi-purpose Kindle Tablet.
  7. The arrival of Kindle books with audio and video. Currently they only work through Kindle for PC and Kindle for iPhone but who knows what type of Kindle device is arriving next.

We have a lot of other clues like the gesture recognition Kindle patent that suggest a multi-purpose Kindle might be in the works.

In a sense Amazon has good reason to hedge its bets.

1. Expanding the reach of the Kindle

Amazon is, by all accounts, doing exceptionally well in ebooks and eReaders. At some point it has to start wondering whether to expand into digital movies and music via the Kindle or a Kindle like device.

It is Amazon so it isn’t just wondering - it’s already planning for this. We know from an earlier post on Kindle job openings that the Kindle platform team also handles video on demand and mp3 downloads. Why would the Kindle platform team be handling these unless there were plans for a new Kindle that plays music and video?

If the Kindle really is a huge success then, just as Amazon expanded from physical books into physical everything, it makes sense for Amazon to expand from ebooks into digital music downloads and game downloads and movie streaming. It already has all these product lines. All it needs is a Kindle like device that users can use to consume these digital offerings.

Amazon needs its own iPad equivalent and a Kindle tablet is the logical solution. At that point the Kindle will either become a separate, less important line or be rolled into this magical deliver-everything device.

2. Preparing for a world without dedicated eReaders

The second reason Amazon needs to hedge its bets is that Tablets are going to get cheaper. That might not seem relevant to dedicated reading devices but it is.

We live in a world of mass delusion – where singers and actors and sportsmen are considered more important than teachers and soldiers and doctors. If enough companies buy into the ‘we need a device that does more than reading’ mantra and the Press keep drumming into people’s heads that there is no difference between eInk and LCD we might reach a stage where most people buy into the nonsense that Tablet X is a better eReader than a dedicated eInk-based eReader because you can also play games on it.

The Kindle would be left as the only dedicated reading device. Which would make a lot of people wonder. It’s about sowing doubt and confusion – Yes, you want a dedicated reading device but there’s more value for money if your device does other things that take away from your reading time and make you more amenable to our advertising and influence.

It’s much tougher to compete if every other competitor embraces color LCDs and is harping on ‘color’ as a big differentiator for reading. Not everyone’s immune to peer pressure, advertising, and influence - people will start to believe that they need color to read books they earlier happily enjoyed in black and white print.

Finally, we look at people who do want to read but not enough to buy a dedicated reading device.

3. Reaching the casual readers

Currently, companies like Apple are selling a device that ‘you can also read on’ but which is better suited to everything other than reading. To get casual readers to read more Amazon and B&N have to create a device ‘you can do more than just read on’ – yet it is still optimized for reading.

It’s necessary to cater to the 30% of the population that would read more if they got the chance. They won’t put down money for a dedicated eInk reader but if they had a device that was good for reading and good for other things they’d read more than they currently do.

Perhaps Amazon feels it’s already well on its way to gathering up the 10% of the population that reads a lot. Perhaps it feels that to reach the next 30%, the casual readers, what’s needed is a Kindle tablet. A Kindle Tablet that lets people read more and also get the much-vaunted ‘color’ and ‘value for money’ and ‘multi-purposeness’ – things that will ensure casual readers don’t choose an Android Tablet which provides an awful reading experience and puts them off books altogether.

In Closing

Today, B&N might do immense damage to reading. A Nook Color could undermine the concept of an eReader dedicated to reading, weaken the position of the Kindle, and slow down the resurgence in reading. B&N doesn’t really have an option though – it has shown it’s incapable of taking the Kindle head-on. Transforming the stage and context of the eReader Wars might be its only hope.

Kindle 3 vs Nook

This Kindle 3 vs Nook review compares Kindle 3, Nook based on what we know so far. The Kindle 3 is $189 and available for preorder at Amazon (it ships August 27th).

Doing a Kindle 3 vs Nook post is a bit unfair because a Nook 2 is in the works and we really should compare Kindle 3 with Nook 2. Will update this post when it comes out.

Kindle 3 vs Nook – Areas Nook Wins

The Nook clearly beats the Kindle 3 in a few areas -

  1. LendMe – When Publishers allow it B&N books have a LendMe feature that lets you lend an ebook once to one person (it’s basically like a single 14 day rental).  
  2. ePub support – Nook supports ePub including DRMed ePub. This is important since most major ebook stores (except Kindle Store) sell ePub books with DRM.
  3. Library eBooks - The majority of libraries use Overdrive and lend out ePub books with DRM. Since Nook supports ePub and DRMed ePub you can read library books on it. Do check with your library to confirm ePub support and to get an idea of its ebook collection.
  4. 3.5″ color helper touchscreen – This adds on to the 6″ eInk screen and helps you navigate via a touchscreen.
  5. MicroSD card – This lets you expand the capacity of the Nook and also use different SD cards for different sets of books (if you desire).
  6. Replaceable Battery – It’s unusual for eReader batteries to die out but if it concerns you then the Nook has a replaceable battery.
  7. Custom Screensavers and Changeable Back - The Nook allows for personalization since you can set your own screensavers and you can change the back casing of the Nook to a color of your choice.
  8. It’s Available now – Kindle 3 only comes out on August 27th and since it’s sold out new orders will only reach around September 4th.

There are a few other Nook benefits and features you might value -

  1. B&N Stores – When in B&N stores you are free to read any ebook for up to an hour (it’s an hour a day so you can keep going back to finish the book).  B&N also has periodic promotions in its stores.
  2. Transfer your Sony Reader library – If you’re switching from Sony Reader you can download all your purchases in ePub format and they will work on the Nook.  
  3. Transfer your eReader.com and Fictionwise.com books – Nook supports pdb format which these two bookstores use (B&N bought these two sites).
  4. Trying out the Nook – If you’re close to a B&N store you can try out the Nook before buying it. It’s also available at Best Buy, Target, and a few other stores. Kindle 3 won’t be out till August end after which you can try it out at Target. 
  5. Sudoku and Chess – Nook has two free games and neither of these are free on the Kindle 3.
  6. Cover Flow – On the smaller color touchscreen of the Nook you can browse books by their cover.  
  7. Android – Nook is built on Android and that allows for lots of things down the like like Android Apps.

The Nook is a solid eReader but it’s part of the older generation of eReaders (which included Kindle 2, Nook, and Sony Touch Edition). Really would recommend waiting for Nook 2 if Nook’s features appeal strongly to you – Nook 2 already has FCC approval and is likely to debut in August or September.

Kindle 3 vs Nook – Areas Kindle 3 and Nook are very close or in a tie

The Kindle 3 vs Nook contest is constantly evolving with software upgrades and new releases and there are lots of areas where they are basically in a tie -

  1. eInk – They both have eInk screens (though of different screen contrasts, more on that below). eInk is easy on the eyes, readable in sunlight, and great for reading.
  2. Price – Kindle 3 is $189 and Nook is $199.
  3. Apps for a variety of platforms – Both Kindle and Nook have a variety of apps that let you read your books across different devices. These include Apps for PC, Mac, iPhone, iPad, Blackberry, and Android.
  4. Agency Model Prices – Books from the 5 Big Agency Model Publishers are at the same prices in both stores. 
  5. 60 second book downloads – Kindle 3 and Nook both offer free 60 second downloads and free store browsing.
  6. WiFi Support – Both offer WiFi support.
  7. Free AT&T WiFi Hotspot Access – Kindle 3, Nook both run on AT&T and you can browse the ebook stores and buy books free by accessing any AT&T WiFi hotspot. That includes Starbucks, B&N stores, and a lot of other places.
  8. Solid Browser – Nook has a very solid browser that can handle lots of sites. Kindle 3 will have an improved WebKit Browser that ought to be as good.
  9. 3 Available Fonts – Nook offers Amasis, Helvetica Neue, and Light Classic. Kindle 3 offers Serif (Caecilia MS), Condensed, and Sans-serif (not sure which). My rating for fonts is Caecilia, Amasis, Light Classic, and then Kindle 3 Sans-serif.  
  10. Multiple devices on one account. Amazon and B&N allow multiple eReaders on one account. There are no limits on number of devices – However, a single book can only be download to 5 or 6 devices.
  11. Screen Rotation – Kindle 3 and Nook both support screen rotation.

This list should hint at the fact that both Kindle 3 and Nook are pretty good eReaders.

Kindle 3 vs Nook – Areas the Kindle 3 wins

This is a long list because Kindle 3 is a much newer product, uses the new generation of eInk, and has a ton of improvements -

  1. Better Screen Contrast – Kindle 3 has 50% better screen contrast than Kindle 2. Since Nook had better screen contrast than Kindle 2 the difference is less (probably 30% to 35%) – However, Kindle 3 has much better screen contrast than Nook. Get the graphite Kindle 3 to further accentuate the screen contrast.  
  2. Ease of Use – Kindle 3 is very simple to use. Nook has two screens and they don’t play well with each other.
  3. More Compact, Thinner - Kindle 3 is very, very compact at 7.5″ x 4.8″ x 0.335″ . Nook is much thicker and slightly bigger at 7.7″ by 4.9″ by 0.5″.
  4. Lighter, Better for one-handed reading – Kindle 3 weighs just 8.7 ounces. Nook is much heavier at 12.1 ounces. Keep in mind that you’ll be holding up your eReader for a while and might have a case to add further weight. Those 3.4 ounces will make a difference.
  5. Text to Speech – When not disabled by Publishers you can have books read out to you. Kindle 3 will also read out all your personal documents (but not PDFs).
  6. Better PDF Support – Kindle 3 adds a lot including search and the ability to add highlights and notes. PDF pan and zoom was added in Kindle 2.5 software upgrade.   
  7. Cheaper Books when they are not Agency Model Books – For books that don’t fall under the Agency Model the Kindle Store tends to have cheaper prices. 
  8. Wider Range of Books – Kindle Store has more new books than B&N store.
  9. Faster page turns and Faster device – The Nook has some bugs and is sometimes sluggish. It also has slower page turns. Amazon has improved page turn speeds consistently and Kindle 3 has impressive page turn speed.
  10. Folders – Amazon has a Collections feature that lets you organize your books into Collections.
  11. International Availability, CJK Fonts, Cyrillic Fonts – You can buy Kindle in 150+ countries, WhisperNet is available in 100+ countries, for US Kindle owners there is free Internet over 3G in all WhisperNet countries, and Kindle 3 supports CJK fonts and Cyrillic fonts.
  12. Battery Life – Kindle 3 lasts an entire month with wireless off while Nook lasts 10 days. Kindle 3 lasts 10 days with wireless on.
  13. Free Internet over 3G – Although it’s slow, there is free Internet available over 3G on the Kindle 3. Nook restricts Internet browsing to when you have WiFi.
  14. Accessibility – The combination of text to speech and the new Voice Guide feature (which reads out Menus and listings) makes the Kindle 3 the first, cheap accessible eReader. It lets blind readers and low vision readers access the 630,000 books in the Kindle Store and their own text files and documents. Note: Text to Speech doesn’t work on PDFs. 

There are a few other things that might make you choose the Kindle 3 -

  1. Kindle 3 is available in graphite and white while Nook is only available in white. 
  2. The Kindle Lighted Case is this beautiful but expensive (it’s $60) case that includes a pull-out LED reading light that is powered by the Kindle 3 itself. So it’s an all in one solution that doesn’t even need batteries.
  3. A Kindle App Store might arrive this year. Amazon released two free word puzzle apps just today (August 3rd) so the App Store might debut in the next few months.
  4. Support for Audible audiobooks – Nook only supports mp3 audiobooks.
  5. Physical Keyboard – This would be a bigger advantage if Amazon hadn’t taken the strange decision to get rid of number keys.
  6. More Newspapers and Magazines – Kindle Store has a lot more newspapers and magazines and also offers blogs.
  7. B&N’s financial situation isn’t very strong.  
  8. Kindle 3 has a microphone. This might be enabled down the line (it’s currently disabled) to allow voice notes, voice commands, and hands free reading.
  9. Larger Font Sizes – Kindle 3 has two super size fonts while Nook has just one.
  10. Longer Return Period – Amazon has a 30 day return period. B&N only allows 14 days and there’s a 10% restocking fee.
  11. Nook doesn’t support .txt and it doesn’t support .doc and .docx (the latter two are supported on Kindle 3 after conversion).
  12. Kindle 3 has stereo speakers while Nook has mono speakers.

Kindle 3 vs Nook is an unfair comparison until Nook 2 arrives and we get to see what B&N’s newest generation Nook is like. At the moment the Kindle 3 is clearly better than the Nook.

Kindle 3 vs Nook Conclusion – Kindle 3 is the clear winner

The Nook is better in -

  1. 2 crucial areas – Library eBooks, Availability (it’s available now).  
  2. 4 important areas – LendMe feature, 3.5″ color touchscreen, MicroSD card, ePub support.
  3. 7 other areas – custom screensavers, replaceable battery, Browse In-Store, support for Sony Store, retail presence, games, cover flow.  

The Kindle 3 is better in -

  1. 4 crucial areas - Better Screen Contrast, Ease of Use, Wider range of books, International availability and support. 
  2. 8 important areas – Lower prices on non Agency Model books, free Internet and Wikipedia over 3G, Text to Speech, Speed and Faster Page Turns, Lower Weight, Better PDF support, Accessibility, Battery Life.   
  3. 7 other areas – Thinner, Folders, choice of graphite or white Kindle 3, possibility of Kindle App Store, larger font sizes, stereo speakers, support for Audible audiobooks.

Kindle 3 seems to be the clear winner – However, Kindle 3 vs Nook comes down to the features that hold the most appeal for you. Do wait to see what Nook 2 is like since Kindle 3 vs Nook 2 will be a much more apt comparison.

The Kindle 3 is very good value for money at $189 and if you don’t need 3G and free Internet over 3G the Kindle WiFi is amazing at $139. If you can, it would be a good idea to wait a month and re-evaluate Kindle 3 vs Nook after Nook 2 arrives.

Kindle 3 threatening to leave Nook far behind

With news that the Kindle 3 is out of stock coming out yesterday night you have to consider how precariously the Nook is perched -

  1. Every Kindle 3 sold represents a lost potential Nook owner. So does every Kindle WiFi sold.
  2. Kindle 3 has sold out and even if Amazon is exaggerating a little bit all signs point to Kindle 3 being a runaway hit.
  3. The Press loves Kindle 3. It’s the first time its shown any love to any Kindle. To make things worse most ‘Kindle is now $139′ articles don’t even mention Nook.
  4. At $189 the Kindle 3 under-cuts the Nook by $10. Kindle 3 also has eInk Pearl and some solid improvements that make it clearly better than Nook. 
  5. Kindle Store was already the best ebook store.
  6. Kindle Whispernet was already the best service/infrastructure and it continues to provide free 3G based Internet browsing.
  7. Kindle already has the lead in both eReader sales and book sales.

Barnes & Noble will have to release or announce the Nook 2 soon (it was probably set for an early September release). If it doesn’t it might lose out on Summer and Back to School eReader sales. Worse, the Kindle will be able to extend its lead on the Nook in terms of customer base. 

Nook WiFi is in an even more precarious position - It’s undercut on price, it doesn’t have eInk Pearl, and it just came out which means there isn’t a Nook WiFi Part 2 ready to save it. Let’s start with Kindle WiFi vs Nook WiFi because that’s a clearer comparison and there’s no Nook WiFi 2 on the horizon.

Nook WiFi just got decimated by Kindle WiFi

There’s no other way to put it.

  1. The eInk Pearl screen has 50% better contrast and the graphite casing ensures the contrast jumps out at you.  
  2. The price is $10 less.
  3. Kindle Store is a better store.
  4. Kindle WiFi is lighter at 8.5 ounces.
  5. Who knows what feature the microphone will enable.

Nook WiFi still has ePub and Library Books and the LendMe feature. However, there’s no denying that it’s a device from the second generation of eReaders forced to compete with a third generation Kindle WiFi. It’s not even fair.

We see the same imbalance with Kindle vs Nook.

Unless Nook 2 comes out soon Kindle 3 will gobble up Nook’s market share

Kindle 3 adds a lot of features that are just not present in Nook 1 -

  1. eInk Pearl Screen.
  2. 1 month battery life.
  3. Faster Page Turns. Kindle 2 was significantly faster than Nook 1 to begin with. 
  4. The microphone and whatever features that enables.
  5. Kindle 3 is far lighter and smaller and far thinner.
  6. The PDF support is much better on Kindle 3.
  7. Kindle 3 is accessible for blind readers. That’s a segment of readers that are ONLY going to buy Kindle 3 and Kindle WiFi.

Here Barnes & Noble has a better shot because Nook 2 is already FCC approved. B&N can cobble together something that matches the Kindle 3 or at least comes close and if it releases Nook 2 with a week or so it can limit the damage.

If Amazon really is selling 100,000 Kindle 3s and Kindle WiFis a week - that might leave nothing for the Nook 2 in September. B&N has to release Nook 2 soon and it has to ensure Nook 2 is comparable.

What else can B&N do to fight off Kindle 3?

For the Kindle 3 the B&N has to polish up Nook 2. For Kindle WiFi it’s stuck. There are, however, things in can do in general -

  1. It needs to beef up its ebook store. Plus match Kindle prices across the board.
  2. It needs to beef up its infrastructure and start offering free browsing like Kindle does.
  3. It needs to go international.
  4. The idea of the Nook mini-stores is a very good one. It does need a solid Nook 2 for it to take off.  
  5. It has to focus on people who don’t know about the Kindle. There are still a lot of those.  
  6. It has to drum up the ePub and Library books features of the Nook.
  7. B&N has to figure out a way to flesh-out LendMe.
  8. It needs to figure out what Apple does to get positive Press coverage. It might not have the advertising dollars to offer so this might not work.
  9. Nook 2 software needs to minimize bugs, crashes, and sluggishness.

B&N has a mountain to climb now. However, it does have its advantages and a smart Nook 2 feature-set combined with an intelligent marketing campaign would ensure it doesn’t get swept away by Kindle 3 and Kindle WiFi. 

Readers need Nook 2 even more than B&N does

These are the things that have been added to the Kindle since Nook and iPad threatened the Kindle’s comfortable lead in eReaders -

  1. PDF Support.
  2. Price cuts from $299 to $189 and $139 (for Kindle WiFi) in just 9 months. 
  3. eInk Pearl Screen.
  4. Folders.
  5. A much improved Kindle 3. Kindle to Kindle 2 was more like Kindle to Kindle 1.5 because there was no one nipping at Amazon’s heels. With Kindle 3 we see the benefits of healthy competition.
  6. 70% cut for Authors.
  7. Acceleration in ebook sales.
  8. WiFi support in Kindle 3 and Kindle WiFi.
  9. Accessibility.

There are a lot of good things that have come out of the healthy (and at times not so healthy) competition between Kindle, Nook, and the pretend-Reader. 

We need a Nook 2 to keep Amazon focused on improving faster and faster. We need an iPad 2 to keep Amazon focused on improving eInk - to remind them to keep kicking PVI/eInk’s behind every few weeks.

Will Nook 2 measure up?

Well, it has to.

B&N has, knowingly and perhaps smartly, bet the farm on the Nook. If Nook doesn’t survive not only will it lose its investment it’ll also lose out on ebooks. At the minimum B&N has to ensure it’s a solid #2 and has 30% of the market. Ideally, it wants to edge out Kindle and get 51% or more of the ebook market.

Nook 1 surprised everyone and it had a laundry list of impressive features – SD card, small LCD touchscreen for navigation, ePub support, PDF support, replaceable battery, LendMe, Library Book support. It edged out the Kindle (it did) and it wasn’t until Amazon added PDF support and cut the Kindle price that it again, narrowly, captured the lead.

Nook 2 will have to deliver on the same scale – It has to be a massive release because the Kindle 3 and the Kindle WiFi have really raised the bar. Don’t really know if Nook 2 will measure up – but if it doesn’t the consequences for B&N (and perhaps for readers) will be painful.

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