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Barnes and Noble Claims they will Continue to Make Tablets and e-Readers
By Michael Kozlowski · Comments 1 Comment
hi-barnesnoble
A few months ago Barnes and Noble shocked the world when they said they were
getting out of the device manufacturing business and splitting the company
into two different segments. Today, the company totally reversed themselves,
saying “If we want to be in the content business, we need to be in the
device business.”
Barnes and Noble organized an investors call today, the first one under Nook
Media CEO Michael Huseby. They stated that the Nook e-reader business,
which includes hardware and digital content, logged revenues of just $153
million, down more than 20% from the same period a year ago. Hardware sales
were down 23% and content sales were down almost 16%.
Michael Huseby mentioned “We have sold approximately 10,000,000 Nooks and
our content activation levels need to better leverage that accomplishment.
Therefore, we are implement programs to better serve our existing customer
base and also aggressively exploring other target consumer markets with the
potential to generate new revenue.”
One of the reasons Barnes and Noble is losing money on the Nook business is
due to the sheer amount of inventory they have. “We overestimated demand
for the products that we put out. As a result of that, we had to discount
those products and we’re selling them now. We don’t want to be in that
position again…eventually we’ll move to a business of lower priced at
higher volume.”
He went on to say, “Our top priority in our operating strategy is to
increase all categories of our content revenue. We are working on innovative
ways to sell content to our existing customers and are exploring new
markets we can serve successfully. The company intends to continue to design
and develop cutting-edge NOOK black and white and color devices. We will
continue to offer our award-winning line of Nook products including Nook
Simple Touch, Nook Simple Touch with Glow Light, Nook HD and Nook HD+ at the
best values in the marketplace. At least one new NOOK device will be
released for the coming holiday season and further products are in
development. All Nook devices will continue to be backed by world-class pre-
and post-sales support in Barnes & Noble stores, as well as ongoing
software upgrades and improvements to the digital bookstore service.”
So basically everything Barnes and Noble has said during their last
investors call is null and void. Investors in the company were shocked by
the revelations made today and have little faith in a company bleeding money
. People are very concerned that B&N is lacking a complete vision in Nook
Media and are taking today’s announcements with a revamped website and new
products, with a grain of salt.
By Michael Kozlowski · Comments 1 Comment
hi-barnesnoble
A few months ago Barnes and Noble shocked the world when they said they were
getting out of the device manufacturing business and splitting the company
into two different segments. Today, the company totally reversed themselves,
saying “If we want to be in the content business, we need to be in the
device business.”
Barnes and Noble organized an investors call today, the first one under Nook
Media CEO Michael Huseby. They stated that the Nook e-reader business,
which includes hardware and digital content, logged revenues of just $153
million, down more than 20% from the same period a year ago. Hardware sales
were down 23% and content sales were down almost 16%.
Michael Huseby mentioned “We have sold approximately 10,000,000 Nooks and
our content activation levels need to better leverage that accomplishment.
Therefore, we are implement programs to better serve our existing customer
base and also aggressively exploring other target consumer markets with the
potential to generate new revenue.”
One of the reasons Barnes and Noble is losing money on the Nook business is
due to the sheer amount of inventory they have. “We overestimated demand
for the products that we put out. As a result of that, we had to discount
those products and we’re selling them now. We don’t want to be in that
position again…eventually we’ll move to a business of lower priced at
higher volume.”
He went on to say, “Our top priority in our operating strategy is to
increase all categories of our content revenue. We are working on innovative
ways to sell content to our existing customers and are exploring new
markets we can serve successfully. The company intends to continue to design
and develop cutting-edge NOOK black and white and color devices. We will
continue to offer our award-winning line of Nook products including Nook
Simple Touch, Nook Simple Touch with Glow Light, Nook HD and Nook HD+ at the
best values in the marketplace. At least one new NOOK device will be
released for the coming holiday season and further products are in
development. All Nook devices will continue to be backed by world-class pre-
and post-sales support in Barnes & Noble stores, as well as ongoing
software upgrades and improvements to the digital bookstore service.”
So basically everything Barnes and Noble has said during their last
investors call is null and void. Investors in the company were shocked by
the revelations made today and have little faith in a company bleeding money
. People are very concerned that B&N is lacking a complete vision in Nook
Media and are taking today’s announcements with a revamped website and new
products, with a grain of salt.