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Doug_Pardee
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B&N to continue designing E-Ink NOOKs, but not manufacturing

From today's press release associated with the quarterly/annual financial report:

Going forward, the company intends to continue to design eReading devices and reading platforms, while creating a partnership model for manufacturing in the competitive color tablet market.  Thus, the widely popular lines of Simple Touch™ and Glowlight™ products will continue to be developed in house, and the company’s tablet line will be co-branded with yet to be announced third party manufacturers of consumer electronics products.

It's a little tricky to discern exactly what is being said there, but my reading is: B&N will continue to design eReaders but not tablets. B&N will find partners for manufacturing of the B&N-designed NOOK eReaders and for providing color tablets that will be badged with the NOOK brand.

 

Clarification can be expected from today's conference call.

 

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keriflur
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

[ Edited ]

Doug_Pardee wrote:

It's a little tricky to discern exactly what is being said there, but my reading is: B&N will continue to design eReaders but not tablets. B&N will find partners for manufacturing of the B&N-designed NOOK eReaders and for providing color tablets that will be badged with the NOOK brand.

 


This is how I read this, and how TheNextWeb reported it (so it sounds like that's how they interpreted it also).

 

Discussion on the TheNextWeb article is here: http://bookclubs.barnesandnoble.com/t5/Community-Room/Nook-future-plans-article/m-p/1463430#M36076

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Ambient12
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

This is from a CNET story today: "Barnes & Noble has also promised to continue support for the tablets in its retail stores and to offer software upgrades via its digital bookstore".

 

Ok I think I can relax now.

Link to story: http://news.cnet.com/8301-1023_3-57590877-93/barnes-noble-bails-out-on-nook-tablet-biz/

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Schwa
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

Does anyone know if  this will be any different than Google which doesn't actually manufacture Nexus devces?  Or would it be even more hands-off than that?

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Pie-Is-Tasty
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

What I thought this meant was Barnes and Noble would continue to develop the eInk Nooks by themselves and would partner with another company to create Nook tablets, to put it in simple terms. Is this correct?
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MacMcK1957
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing


Pie-Is-Tasty wrote:
What I thought this meant was Barnes and Noble would continue to develop the eInk Nooks by themselves and would partner with another company to create Nook tablets, to put it in simple terms. Is this correct?

I read it a bit differently, that they're getting out of the tablet business entirely, but rather will be pushing apps for other people's tablets.

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Schwa
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing


MacMcK1957 wrote:

Pie-Is-Tasty wrote:
What I thought this meant was Barnes and Noble would continue to develop the eInk Nooks by themselves and would partner with another company to create Nook tablets, to put it in simple terms. Is this correct?

I read it a bit differently, that they're getting out of the tablet business entirely, but rather will be pushing apps for other people's tablets.


I disagree only because of the use of "co-branded" in the pres release which makes it sound liekt hey are just getting out of manufacturing.

 

The paragraph from the press release:

 

The company plans to significantly reduce losses in the NOOK segment by limiting risks associated with manufacturing.  Going forward, the company intends to continue to design eReading devices and reading platforms, while creating a partnership model for manufacturing in the competitive color tablet market.  Thus, the widely popular lines of Simple Touch™ and Glowlight™ products will continue to be developed in house, and the company’s tablet line will be co-branded with yet to be announced third party manufacturers of consumer electronics products.  At the same time, the company intends to continue to build its digital catalog, adding thousands of eBooks every week, and launching new NOOK Apps™.

 

Bolded seems to imply "NOOK by (insert brand X here)"  instead of Nook by Barnes and Noble.

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MacMcK1957
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

Which raises the question, how is buying a "Nook by Asus" different from just loading the Nook app on your Asus tablet?

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Pie-Is-Tasty
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

Great point!
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Pie-Is-Tasty
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

Imagin "nook by Amazon"..... Lol
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Mercury_Glitch
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing


MacMcK1957 wrote:

Which raises the question, how is buying a "Nook by Asus" different from just loading the Nook app on your Asus tablet?


 

You wont have a shiny Nook on the device?

 

Limited to no in store support for the Asus tablet since it's got their flavor of Android as opposed to the Nook flavor.  Which isn't a big thing for some, but for others may be an issue. 

 

 

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cgsmom
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

I wonder if the tablets that are "branded" by another manufacturer will continue to have a native reader, or will they just have the Nook app.  While I like the Nook app on my iPod touch, I much prefer the native reader of my Tablet and HD+.

Doug_Pardee
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No strategy change on E-Ink NOOKs: conference call

From the conference call (early transcript, could be a bit rough):

With respect to our popular simple touch e-reader line, we plan to continue to design, innovate and launch new products. We've had the highest rate in e-readers in the market for several years and can manage this device business sufficiently. Customers who own our dedicated e-reader products like Simple Touch and Glowlight comprised the majority of our digital book sales and designing and selling these devices have been key to our digital customer acquisition and content growth model. So, our device development model on e-readers isn't changed.

 ...

We plan to continue to design and produce the best single purposes black and white e-readers on the market...

 ...

[from Q&A] the majority of the content sales come from non-tablets from the black-and-white eReaders ... its been our primarily customer acquisition vehicle for content.

The key phrases I see in there: "can manage this device business sufficiently," "comprised the majority of our digital book sales," "our device development model on e-readers isn't changed."

 

"Too bad those devices aren't great for magazines." — things not said.

 

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MacMcK1957
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Re: No strategy change on E-Ink NOOKs: conference call

Customers who own our dedicated e-reader products like Simple Touch and Glowlight comprised the majority of our digital book sales...

 

I've long suspected this, but don't think I've ever seen it confirmed before.

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Mercury_Glitch
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Re: No strategy change on E-Ink NOOKs: conference call


MacMcK1957 wrote:

Customers who own our dedicated e-reader products like Simple Touch and Glowlight comprised the majority of our digital book sales...

 

I've long suspected this, but don't think I've ever seen it confirmed before.


 

I psuedo confirmed it based on my experiences with peoples devices.  But it's nice to know that what I was seeing was reflective of a larger picture.  It's also nice having an official statement to point to.

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keriflur
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Re: No strategy change on E-Ink NOOKs: conference call


Mercury_Glitch wrote:

MacMcK1957 wrote:

Customers who own our dedicated e-reader products like Simple Touch and Glowlight comprised the majority of our digital book sales...

 

I've long suspected this, but don't think I've ever seen it confirmed before.


 

I psuedo confirmed it based on my experiences with peoples devices.  But it's nice to know that what I was seeing was reflective of a larger picture.  It's also nice having an official statement to point to.


This doesn't surprise me at all.  I'm glad they've done the math on it.  I'm also glad they've finally given official word that there *is* a new eink nook coming, and that (they believe) it will be something of a leader in the device race.

 

This is enough to convince me to hold off on buying the Aura.  Hopefully B&N can come through on this one.

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Beangrape
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

I would imagine the difference would be that the co-branded device would be loaded with B&N Android skin. Also having a co-branded device means that users would still be able to access the Nook App store along with the Nood Video store. My understanding is that you can't buy the Nook Apps and Nook Videos using the Nook for Android app.

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keriflur
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

[ Edited ]

Beangrape wrote:

I would imagine the difference would be that the co-branded device would be loaded with B&N Android skin. Also having a co-branded device means that users would still be able to access the Nook App store along with the Nood Video store. My understanding is that you can't buy the Nook Apps and Nook Videos using the Nook for Android app.


You are correct, the Nook for Android app is books-only.  Though given the move to add the Play store to their current line-up of devices, I'm not sure if Nook Apps will be a part of the co-branded device.

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desertswan
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

I just purchased a NOOK tablet & am excited! Today I read on yahoo that BN is about to go under soon! One of the attractions to the NOOK was that you could get real live in-store tech support plus free book every Fri. what gives? I'm thinking on sending the product back :smileysad:

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kamas716
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Re: B&N to continue designing E-Ink NOOKs, but not manufacturing

desertswan, you might want to go back and read some more. The press releases today talk about discontinuing tablet device production, not going out of business. Even if the company does go out of business, your device will continue to work.
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