Can the new Nook save Barnes & Noble?

The struggling bookseller unveils an updated tablet e-reader to compete with Amazon's Kindle Fire.

By Kim Peterson Nov 7, 2011 2:43PM
As just about everyone expected, Barnes & Noble (BKS) has announced a new version of its Nook e-reader to keep up with Amazon (AMZN).

The bookstore chain will sell the Nook Tablet for $249, which is about $50 more than the upcoming Kindle Fire from Amazon. Both devices are coming out next week.

Post continues below.
Does the Nook Tablet have what it takes to beat the new Kindle? As far as technical chops go, the Nook appears to be the winner.

The Nook Tablet: $249
Seven-inch color screen
Weight: 14.1 ounces
Storage capacity: 16 GB built-in (expandable with a microSD slot)
RAM: 1 GB
Runs over Wi-Fi
Battery life: Nine hours of continuous video or 11.5 hours of reading (on low-power mode)

The Kindle Fire: $199
Seven-inch color screen
Weight: 14.6 ounces
Storage capacity: 8 GB built-in. No microSD slot
RAM: 512 MB
Runs over Wi-Fi
Battery life: Eight hours (on low-power mode)

Both devices are running custom versions of the Android operating system developed by Google (GOOG). None have cameras or 3G wireless access.

The Nook also gives access to video streaming through Netflix (NFLX) and Hulu Plus. Amazon is trying to push content from its own video-streaming library.

So the Nook has some superiority over the new Kindle. But is that enough to save Barnes & Noble? Investors weren't too thrilled Monday, it seems. Barnes & Noble shares dropped a little more than 1% to $11.47 after the Nook Tablet announcement. Shares are down 20% in the past year.

Amazon shares were down less than 1% to $215.54.

Neither the Nook nor the Fire can match the Apple (AAPL) iPad, of course, but they aren't meant to be direct rivals. Amazon and Barnes & Noble are emphasizing a narrow media-consumption platform, with digital books, videos and music as the primary drivers. The iPad has more abilities and a higher price tag.

Barnes & Noble will still sell its Nook Color, by the way, but at a reduced price of $199. The Nook Simple Touch device gets a price drop to $99.
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

120
120 rated 1
268
268 rated 2
439
439 rated 3
709
709 rated 4
641
641 rated 5
609
609 rated 6
640
640 rated 7
516
516 rated 8
272
272 rated 9
152
152 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
EXCEXELON CORPORATION10
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.