Barnes & Noble shares plunge on Nook pullout
Competition from Apple, Google and a host of other rivals proves too intense for the bookseller.
Barnes & Noble (BKS) is raising the white flag in the tablet war, and its investors are hopping mad about it.
Shares of the bookseller plunged 17% Tuesday afternoon to close at $15.61 after the company said it will stop making its Nook color tablets (pictured). Now the company is looking to put the Nook name on a device made by someone else.
Barnes & Noble will continue to make the black-and-white Nook e-reader. But it made no sense to keep throwing money at a color tablet even as customers appear to be losing interest.
Nook sales fell by 34% in the company's fiscal fourth quarter to just $108 million and losses were growing, The Wall Street Journal reported.
The Nook business has struggled for years, even with Microsoft's (MSFT) decision last year to invest $300 million in the division for a 17.6% stake. (Microsoft owns and publishes moneyNOW, an MSN Money site.)
Amazon.com (AMZN) has continued to plow money into developing and marketing its Kindle line of e-readers and tablets. Amazon was able to lowball its Kindle prices, staying with its strategy of essentially subsidizing the hardware in hopes of making more money on sales of e-books and other digital content. Amazon shares, by the way, barely budged after the Nook announcement.
There are plenty of good tablets in development -- many built on the Android operating system from Google (GOOG) -- and Barnes & Noble can easily make the jump from developing its own reader to slapping the Nook name on a third-party device. And if the company handles it right, customers may not notice any change.
Still, the news was a defeat for Barnes & Noble and did nothing to stem worries that the retailer is headed for niche status.
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That is one of the principle problems with the pace of today's technology. By the time that you buy something it is already becoming obsolete. I haven't even learned to use all of the features on my new smart phone and the manufacturer has already introduced a newer one with even more features. Frankly I just accept that I already have all that I wanted in the first place and am glad that I am not paying for the new stuff that I probably wouldn't use anyway. LOL
Simply put if you just want to have the latest and greatest more power to you and I hope your wallet can hold up to the stress. To be happy just decide what you actually need and once you have it quit looking over the fence at the new stuff at least until you really have a need for it.
I just bought a NOOK HD+ less than 2 weeks ago when it was on sale for Father's Day. I can use it for much more than just a ebook reader. It has it's pluses/minuses just like any other electronic device. I did purchase an extended warranty thru a 3rd party so if it blows up or gives up the ghost I get my initial money back. It's versatile enough for what I need it for. I'm positive that store employees had to know that the signs were there for B/N to abandon the making of color tablets. One thing for sure is that B/N aftermarket support STINKS.. To have to call a call center in India to get even minor support is silly. The people there are ill-informed, and do little to work with someone who needs answers. My nearest B/N brick and mortar store is almost 40 miles away, and I hope that someone brings some answers to the table before B/N goes the way of Borders/Waldenbooks/B. Dalton...The NOOK HD+ that was "supposed" to only be on sale for the Father's Day weekend is still on sale on the B/N website. This either says- 1) they are trying hard to dump inventory, or 2) they are trying to get people to buy their tablets with the hopes that they can still sell downloads for them..
reports say barnes and nobles are shuting down as many as 85% of their stores
early next year.. the ebook and cheap prices online are killing them. no wonder.
damn first boarders book stores,crowns few others and B&N Lossing
big time.. their stock is WAAAAY DOWN their book sales is way down.
they could be out by mid. next year.
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There was no specific news catalyst behind today's slide, which had the markings of broad-based profit-taking. Seven of ten sectors settled with losses of 1.0% or more while only two groups ... More
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