Feeds

Barnes & Noble to sling their Nook - report

Insider sheds light on B&N moves ahead of Q3 results on Thursday

Internet Security Threat Report 2014

As Barnes & Noble prepare investors for disappointing quarterly results on Thursday, the company will move away from making hardware and put more emphasis on shifting digital books, a New York Times source says.

The company - America's biggest bookseller and the maker of the Nook tablet - has announced that yearly revenue for the Nook division (device sales and ebooks) will be below the $3bn predicted, and that the division will once again make a loss. B&N issued the advice ahead of its full Q3 results on Thursday.

B&N had a total revenue of £7.1bn in the fiscal year 2012. Revenue from Nook sales and digital content sales in 2012 was $933m for the full year in 2012, with the division making an overall loss of $261.7m. It seems like the division was unable to pull off the tripling of sales expected this year, and crucially, that the division was unable to turn a profit.

Recent holiday results for the Christmas just gone showed Nook section revenues fell by 12.6 per cent in the nine-week period to Christmas, compared to the year before. It was the device that was dragging profits down: digital content sales increased 13.1 per cent, but Nook device unit sales declined compared to the prior year.

Since the tablet was launched in 2009, Barnes & Noble has put significant investment into producing the Nook hardware and platform. But it looks like the forthcoming gloom will force the bookseller to change its policy:

“They are not completely getting out of the hardware business, but they are going to lean a lot more on the comprehensive digital catalog of content" said the NYT source.

The death of the Nook hardware would remove one small-scale competitor from the cut-throat tablet market, where it is hard to compete against Amazon, Apple and Google. B&N's deal with Microsoft in April last year could signal a direction for the Nook as a etail store rather than a physical device. ®

Beginner's guide to SSL certificates

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.