E Ink, the popular company that provides paper-look gray-scale displays for eReaders, reported consolidated revenues of $48.02 million in January, down 63.6% from the same month last year and 11% sequentially. The growing popularity of media tablets with full-color displays likely played a big role in the decline — sales of Amazon’s Kindle Fire and Barnes & Noble’s Nook Tablet are thought to be eating into the companies’ respective dedicated eReader businesses to an extent. Even though E Ink’s revenue took a nose dive in January, the company said that it expects to post revenues of $1.35 billion this year, up 5% from 2011.

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Amazon’s Kindle Fire is a smash hit, with fourth-quarter sales that may exceed even the most lofty estimates reported ahead of the tablet’s recent launch. In just over six weeks of availability this quarter, analysts at Goldman Sachs estimate that Amazon will sell as many as 6 million Kindle Fire tablets. Add to that another 8 million Kindle-branded eBook readers the firm sees Amazon selling between October and the end of this year, and the retailer looks to be in store for a huge holiday quarter. ”While the Kindle Fire certainly doesn’t have the breadth of functionality of the iPad (no camera or microphone, shorter battery life and less memory), it does a few things very well, which just happen to be the few actions that users utilize the tablet form factor most often for, in our view,” Goldman’s report stated. BGR reviewed the Kindle Fire last month and we viewed it as an excellent and affordable option for many consumers looking to consume the wide range of digital content now available from Amazon.

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The European Commission announced Tuesday that it has opened formal proceedings to investigate whether or not major eBook publishers, possibly “with the help of Apple,” are “engaged in anti-competitive practices affecting the sale of eBooks.” The publishing companies named in the investigation include Hachette Livre, Harper Collins, Simon & Schuster, Penguin and Verlagsgruppe Georg von Holzbrinck. “The Commission will in particular investigate whether these publishing groups and Apple have engaged in illegal agreements or practices that would have the object or the effect of restricting competition in the EU or in the EEA,” the European Commission said in a statement. It is unclear how long the investigation will take. A press release from the European Commission follows after the break.

Antitrust: Commission opens formal proceedings to investigate sales of e-books

Brussels, 06 December 2011 – The European Commission has opened formal antitrust proceedings to investigate whether international publishers Hachette Livre (Lagardère Publishing, France), Harper Collins (News Corp., USA), Simon & Schuster (CBS Corp., USA), Penguin (Pearson Group, United Kingdom) and Verlagsgruppe Georg von Holzbrinck (owner of inter alia Macmillan, Germany) have, possibly with the help of Apple, engaged in anti-competitive practices affecting the sale of e-books in the European Economic Area (EEA)1, in breach of EU antitrust rules. The opening of proceedings means that the Commission will treat the case as a matter of priority. It does not prejudge the outcome of the investigation.

The Commission will in particular investigate whether these publishing groups and Apple have engaged in illegal agreements or practices that would have the object or the effect of restricting competition in the EU or in the EEA. The Commission is also examining the character and terms of the agency agreements entered into by the above named five publishers and retailers for the sale of e-books. The Commission has concerns, that these practices may breach EU antitrust rules that prohibit cartels and restrictive business practices (Article 101 of the Treaty on the Functioning of the European Union – TFEU).

The duration of antitrust investigations depends on a number of factors, including the complexity of each case, the extent to which the undertakings concerned cooperate with the Commission and the exercise of the rights of defence.

Background on the ebooks investigation

In March 2011, the Commission carried out unannounced inspections at the premises of several companies active in the e-book publishing sector in several Member States (see MEMO/11/126).
To date, the Commission and the UK Office of Fair Trading have investigated in parallel and in close cooperation whether arrangements for the sale of e-books may breach competition rules. Before the Commission opened formal proceedings, the OFT had closed its investigation on grounds of administrative priority. The OFT has made a substantial contribution to the ebooks investigation and will continue to co-operate closely with the Commission going forward.

Background on antitrust investigations

Article 101 of the TFEU prohibits agreements and concerted practices which may affect trade and prevent or restrict competition. The implementation of this provision is defined in the Antitrust Regulation (Council Regulation No 1/2003) which can be applied by the Commission and by the national competition authorities of EU Member States.

The legal base for the Commission’s opening of formal proceedings is Article 11(6) of the Antitrust Regulation (Council Regulation No 1/2003).

Article 11(6) of the Antitrust Regulation provides that the initiation of proceedings by the Commission relieves the competition authorities of the Member States of their competence to also apply EU competition rules to the practices concerned. Article 16(1) further provides that national courts must avoid giving decisions, which would conflict with a decision contemplated by the Commission in proceedings that it has initiated.

The Commission has informed the companies and the competition authorities of the Member States that it has opened proceedings in this case.

Barnes & Noble on Thursday reported its results for the second fiscal quarter of 2012, in which it revealed its Nook business has seen stellar growth over the last year. The company said that its Nook business, which includes sales of tablets, eReaders and eBooks, pulled in $220 million in the second quarter, up 85% from the same quarter last year. Barnes & Noble did not reveal how many Nook devices it sold during the quarter but said that it expects to sell “millions of devices” during the third fiscal quarter. B&N.com sales increased 17% year-over-year from $177 million to $206 million, but Barnes & Noble’s overall sales fell 0.6% from $190 billion in the second quarter last year to $189 billion this past quarter. Retail sales also dropped 1% from $931 million to $918 million. Barnes & Noble’s full press release follows after the break.

Barnes & Noble Reports Fiscal 2012 Second Quarter Financial Results

EBITDA Increases 21% over the Prior Year

Comparable Store Sales Increase 10.9% over the Three Day Holiday Weekend

NOOK Tablet™ Becomes Fastest Selling NOOK™ Product

NEW YORK–(BUSINESS WIRE)–Barnes & Noble, Inc. (NYSE: BKS) today reported sales and earnings for its second quarter ended October 29, 2011.

SECOND QUARTER SALES

Total sales decreased 0.6% as compared to the prior year, from $1.90 billion to $1.89 billion. Barnes & Noble store (“Retail”) sales decreased 1% from $931 million to $918 million, with comparable sales decreasing 0.6%. Physical book sales declined, offset by increases in NOOK products and were positively affected by the liquidation of the remaining Borders stores. Comparable store sales improved each month throughout the quarter.

Barnes & Noble College (“College”) sales declined 4% from $797 million to $768 million, due to a shift from selling new and used textbooks to lower priced, higher margin textbook rentals. Comparable store sales increased 0.4%. College comparable store sales reflect the retail selling price of a new or used textbook when rented, rather than solely the rental fee received and amortized over the rental period.

BN.com sales increased 17% over the prior year, from $177 million to $206 million. Comparable sales increased 38%, on top of a 59% increase a year ago. This increase was driven by continued growth of digital content sales and purchases of award winning NOOK™ devices. BN.com comparable sales reflect the actual selling price for eBooks sold under the agency model rather than solely the commission received.

SECOND QUARTER EARNINGS

Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 21% over the prior year, from $46 million to $56 million.

Retail EBITDA grew from $1.3 million to $21.0 million, benefiting from higher product margins this year. In addition, the prior year included $10 million of litigation and proxy contest costs. College EBITDA declined slightly from $95.3 million to $93.9 million. BN.com EBITDA losses increased from $50.2 million to $58.9 million, driven by planned product markdowns on the recently announced NOOK price adjustments, as well as higher advertising production costs.

Total company net loss was $6.6 million for the quarter, or $0.17 per share, as compared to a net loss of $12.6 million last year, or $0.22 per share. Included in the current quarter is a $0.06 loss per share related to the company’s preferred stock dividend, in accordance with ASC 260, Earnings per Share. The dividend is deducted from earnings available to common shareholders in the earnings per share calculation and does not impact the company’s results of operations.

BARNES & NOBLE LAUNCHES NOOK Tablet™

On November 7, 2011, Barnes & Noble launched NOOK Tablet, the company’s fastest and lightest tablet with the best in entertainment. msnbc.com cited the product as a “terrific tablet,” The Associated Press called it “really impressive” and Forrester Research Inc. called it a “wow product”. In the first few weeks of launch, NOOK Tablet has become the fastest selling NOOK product in the company’s history.

Concurrent with the launch of NOOK Tablet, the company also announced enhancements and new low prices for NOOK Color™ and NOOK Simple Touch™, retailing at $199 and $99, respectively.

The newly updated NOOK Simple Touch continues to earn high praise from leading tech review outlets. CNET, PCMag and Laptop Magazine rank it among their top-rated touch eReaders with all three naming it “Editor’s Choice” and this week, PC World rated NOOK Simple Touch the #1 eReader (11/29/11).

The consolidated NOOK business across all of the company’s segments, including sales of digital content, device hardware and related accessories, increased 85% in the second quarter to $220 million, on a comparable sales basis.

“The launch of NOOK Tablet, combined with the product enhancements to NOOK Color and $99 NOOK Simple Touch, represents the highest-quality portfolio of digital reading products on the market at incredible values,” said William Lynch, chief executive officer of Barnes & Noble, Inc. “We expect to sell millions of devices during our third quarter, adding to the millions of current NOOK customers. This growing base of customers buying digital content from Barnes & Noble will continue to position us as one of the fastest growing companies in this exploding digital content market, and we project this will generate significant returns on our investments for years to come.”

HOLIDAY RESULTS TO DATE

Over the three-day holiday weekend, comparable store sales increased 10.9% at Barnes & Noble stores, on top of 17% comparable store growth last year. “Based on early sales and traffic results in stores we are encouraged by our prospects for this upcoming holiday,” added William Lynch.

FULL YEAR GUIDANCE

The company expects full year EBITDA to be at the lower end of the previously issued range of $210 million to $250 million. Although the company has seen and continues to expect increases in retail earnings from plan, it plans to invest more heavily in customer acquisition activities to fuel NOOK digital growth. These investments primarily include promotional activity and advertising for NOOK products, as well as technology costs related to developing other opportunities.

CONFERENCE CALL

A conference call with Barnes & Noble, Inc.’s senior management will be webcast beginning at 10:00 A.M. ET on Thursday, December 1, 2011, and is accessible at www.barnesandnobleinc.com/webcasts.

Barnes & Noble, Inc. will report holiday sales on or about January 5, 2012.

Strong demand for Amazon’s new Kindle Fire tablet and the continued popularity of Kindle eReaders lead to the retail giant’s best-ever Black Friday for the Kindle family of products. Amazon on Monday announced that sales of Kindle devices on Black Friday quadrupled last year’s sales, setting a new record. The company neglected to report sales figures, however it did say it sold millions of new Kindle eReaders and Kindle Fire tablets combined before the Black Friday shopping weekend began. ”Even before the busy holiday shopping weekend, we’d already sold millions of the new Kindle family and Kindle Fire was the bestselling product across all of Amazon.com,” said Amazon VP Dave Limp in a statement. “Black Friday was the best ever for the Kindle family – customers purchased 4X as many Kindle devices as they did last Black Friday – and last year was a great year. In addition, we’re seeing a lot of customers buying multiple Kindles – one for themselves and others as gifts – we expect this trend to continue on Cyber Monday and through the holiday shopping season.” Amazon also noted that the Kindle Fire tablet, which BGR reviewed earlier this month, has now been Amazon’s best-selling product for eight weeks running. The company’s full press release follows below.

Best Black Friday Ever for Kindle Family: Kindle Sales Increase 4X Over Last Year

Holiday shoppers made Kindle Fire the bestselling product across all of Amazon.com on Black Friday

Kindle Fire now the bestselling product across Amazon for 8 weeks running – ever since its introduction on September 28

SEATTLE–(BUSINESS WIRE)–(NASDAQ: AMZN) Amazon.com, Inc. today announced that this Black Friday was the best ever for the Kindle family and the popular Kindle Fire remained the bestselling product across all of Amazon since its introduction 8 weeks ago. The bestselling Kindle family – the $79 Kindle, $99 Kindle Touch, $149 Kindle Touch 3G and the $199 Kindle Fire – are available now at www.amazon.com/kindle and at over 16,000 retail locations throughout the United States.

“This was a great Black Friday for Target and for Kindle Fire, which was the bestselling tablet in our stores on Black Friday,” said Nik Nayar, vice president merchandising, Target. “We’re excited so many guests chose Target as their destination for the new family of Kindle devices and we’re sure Kindle Fire will continue to be at the top of wish lists this holiday season.”“Even before the busy holiday shopping weekend, we’d already sold millions of the new Kindle family and Kindle Fire was the bestselling product across all of Amazon.com. Black Friday was the best ever for the Kindle family – customers purchased 4X as many Kindle devices as they did last Black Friday – and last year was a great year,” said Dave Limp, Vice President, Amazon Kindle. “In addition, we’re seeing a lot of customers buying multiple Kindles – one for themselves and others as gifts – we expect this trend to continue on Cyber Monday and through the holiday shopping season.”

“We knew Kindle Fire and the new E Ink Kindles would be highly desirable gifts this holiday season,” said Wendy Fritz, senior vice president of Computing, Tablets and e-Readers at Best Buy. “If this Black Friday was any indication, they are only getting hotter as we get into the shopping season.”

Kindle Fire is the bestselling item on Amazon.com and offers more than 18 million movies, TV shows, songs, books, magazines, apps and games – such as Netflix, Hulu, Pandora and Angry Birds – as well as free storage of Amazon digital content in the Amazon Cloud, Whispersync for books and movies, a 14.6 ounce design that’s easy to hold with one hand, a vibrant, color touch screen, a powerful dual-core processor and Amazon Silk – Amazon’s new revolutionary web browser that accelerates the power of the mobile device by using the computing speed and power of the Amazon Web Services cloud – all for only $199.

The $79 latest generation Kindle is for readers around the world who want the lightest, most compact Kindle at an incredible price. Kindle is now small and light enough – at less than 6 ounces – to fit easily in your pocket and carry with you everywhere, yet it still features the same 6-inch, most advanced electronic ink display that reads like real paper, even in bright sunlight.

Kindle Touch and Kindle Touch 3G feature an easy-to-use touch screen that makes it easier than ever to turn pages, search, shop, and take notes – still with all the benefits of the most advanced electronic ink display. Kindle Touch and Kindle Touch 3G are also lighter, smaller, offer audio capabilities, such as text-to-speech and deep integration for audiobooks, extra-long battery life and hold thousands of books. Kindle Touch 3G offers the unparalleled added convenience of free 3G. Kindle’s free 3G connection means you never have to hunt for or pay for a Wi-Fi hotspot – you simply download and read books anytime, anywhere in over 100 countries around the world. Amazon pays for the 3G connection so there’s no monthly fee or annual contract. Both Kindle Touch and Kindle Touch 3G include X-ray – a new feature invented by Amazon that lets customers explore the “bones of the book.”

With an Amazon Prime membership, all of the new Kindles offer access to the new Kindle Owners’ Lending Library. Kindle owners can now choose from thousands of books to borrow for free – including over 100 current and former New York Times Bestsellers – as frequently as a book a month, with no due dates. No other e-reader or e-bookstore offers such a service.

Customers can order the new Kindle family today: the $79 Kindle at www.amazon.com/kindle, Kindle Touch for $99 at www.amazon.com/kindletouch, Kindle Touch 3G for $149 atwww.amazon.com/kindletouch3G and Kindle Fire for $199 at www.amazon.com/kindlefire.

Amazon’s Kindle Library Lending service, first announced in April, is now live in the United States. The service allows Kindle users to borrow eBooks from more than 11,000 participating libraries across the country. Here’s how it works: simply visit the website of a U.S. library with support for OverDrive and then, provided you have a library card, check out a Kindle book by clicking “Get for Kindle.” The eBook will then be delivered to your Kindle via Wi-Fi or USB. Library Lending is supported on any device that has Amazon’s Kindle application installed, which means it is available for multiple platforms including the PC, Android, iOS, Blackberry and Windows Phone. There are no limitations to titles borrowed from a library, and users can still view real page numbers and synchronize notes, highlights and more across multiple devices.

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Amazon launched its new Kindle Cloud Reader service on Wednesday that provides users with access their Kindle library using Chrome or Safari on Mac, PC, Linux and the Chromebook. Kindle Cloud Reader is also optimized for the iPad and offers a caching feature for offline reading. To get started, simply navigate to http://read.amazon.com and install the small required plug-in. We gave the service a quick run this morning and were impressed by how fast it loaded our eBook library. We definitely still prefer the standalone app on the iPad, but we’re sure Amazon created this option as a loophole to get around Apple’s iTunes App Store rules. Don’t use Safari or Chrome? Amazon still has you covered with its Kindle for PC client. Read on for the full press release.

Introducing Kindle Cloud Reader

Read over 950,000 Kindle books in your web browser – no download or installation required

Based on HTML5, Kindle Cloud Reader optimizes for the platform you’re using and automatically stores your latest book locally for offline reading

Instant Books – no waiting for a download, start reading the book immediately, offline or online

SEATTLE–(BUSINESS WIRE)–(NASDAQ: AMZN) – For over two years, Amazon has been offering a wide selection of free Kindle reading apps that enable customers to “Buy Once, Read Everywhere.” Customers can already read Kindle books on the largest number of the most popular devices and platforms, including Kindles, iPads, iPhones, iPod touches, PCs, Macs, Android phones and tablets, and BlackBerrys. Today, Amazon.com announced Kindle Cloud Reader, its latest Kindle reading application that leverages HTML5 and enables customers to read Kindle books instantly using only their web browser – online or offline – with no downloading or installation required. As with all Kindle apps, Kindle Cloud Reader automatically synchronizes your Kindle library, as well as your last page read, bookmarks, notes, and highlights for all of your Kindle books, no matter how you choose to read them. Kindle Cloud Reader with its integrated touch optimized Kindle Store is available starting today for Safari on iPad, Safari on desktop and Chrome at www.amazon.com/cloudreader.

“We are excited to take this leap forward in our ‘Buy Once, Read Everywhere’ mission and help customers access their library instantly from anywhere”

“We are excited to take this leap forward in our ‘Buy Once, Read Everywhere’ mission and help customers access their library instantly from anywhere,” said Dorothy Nicholls, Director, Amazon Kindle. “We have written the application from the ground up in HTML5, so that customers can also access their content offline directly from their browser. The flexibility of HTML5 allows us to build one application that automatically adapts to the platform you’re using – from Chrome to iOS. To make it easy and seamless to discover new books, we’ve added an integrated, touch optimized store directly into Cloud Reader, allowing customers one click access to a vast selection of books.”

Features of Kindle Cloud Reader include:

• An immersive view of your entire Kindle library, with instant access to all of your books
• Start reading over 950,000 Kindle books instantly within your browser
• An embedded Kindle Store optimized for your web browser makes it seamless to discover new books and start reading them instantly
• New Kindle Store for iPad is built from the ground up for iPad’s touch interface
• Your current book is automatically made available for offline use, and you can choose to save a book for reading offline at any time
• Receive automatic software updates without the need to download new software
• Select any book to start reading, customize the page layout to your desired font size, text color, background color, and more
• View all of the notes, highlights, and bookmarks that you’ve made on other Kindle apps or on Kindle
• Sync your last page read across your Kindle and free Kindle apps so you can always pick up where you left off

Kindle Cloud Reader is available for Safari on iPad, Safari on desktop and Chrome starting today. Kindle Cloud Reader on the iPad is optimized for the size and unique touch interface of iPad. Without even leaving the app, customers can start shopping in the Kindle Store and will find a unique and immersive shopping experience built specifically for iPad’s Safari browser.

Kindle Cloud Reader will be available on additional web browsers, including Internet Explorer, Firefox, the BlackBerry PlayBook browser, and other mobile browsers, in the coming months.

Amazon.com customers can start reading their Kindle books immediately using Kindle Cloud Reader at www.amazon.com/cloudreader.

Sony is expected to introduce a new family of eReader devices to challenge the Amazon Kindle and Barnes & Noble Nook devices next month. In an interview with Bloomberg, Sony Electronics’ vice president of digital reading Phil Lubell said that the new eReaders will offer both software and hardware enhancements, although he wasn’t specific on what exactly the changes are. Lubell said the devices will hit the market ahead of his company’s S1 and S2 Android tablets. AT&T announced yesterday that it would ship the dual-screen S2 to its customers in time for the back-to-school season, and Sony said its tablets will receive a software update later this year with support for the company’s eReader bookstore and software. “Sony appears to be struggling to expand its e-reader business as fast as it had originally planned,” Nobuo Kurahashi, an analyst at Mizuho Financial Group Inc. in Tokyo, told Bloomberg. Sony’s Reader products currently cost between $180 and $300 and the company will need to drop that price in order to compete with Amazon’s $114 Amazon Kindle with Special Offers and Barnes & Noble’s $139 ‘All new NOOK.’

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Amazon announced on Wednesday that AT&T will sponsor a new Kindle 3G with Special Offers, a deal that has lowered the price of the device $50 to $139.99. In a statement, AT&T’s CEO Ralph de la Vega said that the Kindle 3G is “by far the fastest growing connected device” on AT&T’s network. Amazon’s “Special Offers” devices come at the cost of ad-sponsored content. Users will see advertisements at the bottom of the screen and can launch the “AdMash” Kindle application to choose which advertisements are displayed. The $114 Kindle Wi-Fi with Special Offers device, which launched in April, is currently the best selling version of the popular eReader. Read on for the full press release.

AT&T To Sponsor Kindle 3G

New Kindle 3G with Special Offers price is $139 – still no monthly fee or annual contract; Never pay for or hunt for a Wi-Fi hotspot; Kindle 3G customers read more

Seattle, Washington, July 13, 2011

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With Kindle 3G, there’s no wireless set up, and no paying for or hunting for Wi-Fi hotspots.  Kindle 3G’s always-on global wireless connectivity means that wherever you are – at the beach, on the train, or stuck on the tarmac – no problem, you can download books and periodicals in less than 60 seconds and start reading instantly.  Amazon pays for Kindle’s 3G wireless connectivity, which means the convenience of 3G comes with no monthly fees, data plans, or annual contracts.  Today, Amazon.com announced that AT&T has agreed to sponsor Kindle 3G with Special Offers and that it is now available at a new price of $139.  Kindle 3G with Special Offers is the same as the $189 Kindle 3G, plus money-saving special offers and sponsored screensavers.

“Kindle 3G is more convenient – customers never have to hunt for or pay for a Wi-Fi hotspot – they simply download and read books anytime, anywhere.  Kindle 3G customers read 20 percent more books, and take advantage of twice as many special offers,” said Jeff Bezos, Founder and CEO, Amazon.com.  “A big thank you to AT&T for helping to make the new $139 price possible.”

“Kindle 3G is by far the fastest-growing connected device on the AT&T network. We consistently hear from customers how much they enjoy the freedom of not being tied to a Wi-Fi hotspot and instead being able to download and read new books anytime, anywhere on AT&T’s fast, reliable network,” said Ralph de la Vega, President and CEO, AT&T Mobility and Consumer Markets.  “We are excited to sponsor Amazon’s best Kindle – Kindle 3G with Special Offers – at the new lower price of only $139.”

Kindle 3G includes all the same features that helped make the third-generation Kindle the #1 bestselling e-reader in the world:

• Free 3G wireless, no annual contracts, no monthly fees
• Global 3G coverage means books in under 60 seconds in over 100 countries and territories
• Paper-like Pearl electronic ink display, no glare even in bright sunlight
• Lightweight body for hours of comfortable reading with one hand
• Kindle Store with over 950,000 books – largest selection of the most popular books
• Seamless integration with free “Buy Once, Read Everywhere” Kindle apps for iPad, iPod touch, iPhone, Android, PC, Mac, BlackBerry and Windows Phone

Learn more at www.amazon.com/kindle.

IDC recently published a report that provided a snapshot view of the tablet and eReader markets. The company noted that in the first quarter, for the first time ever, Barnes & Noble’s NOOK Color lead the eReader pack ahead of Amazon’s Kindle. Even though Barnes & Noble just introduced the “all new NOOK,” a black and white device, IDC says that the lack of a color screen on Amazon’s Kindle “clearly impacted the company’s previous dominance in the eReader market.” The research firm also found that the eReader market declined to just 2.2 million units shipped in the first quarter, and said that the “post-holiday season proved to be challenging” for the eReader market. IDC still expects the global eReader market to ship 16.2 million devices this year, up 24% from last year. Read on for the full press release, which offers a few details on the tablet market, too.

Media Tablet Sales Lag Optimistic First Quarter Targets, But Forecast Remains Strong, According to IDC

08 Jul 2011

FRAMINGHAM, Mass., July 8, 2011 – Worldwide media tablet shipments into sales channels fell by 28% on a sequential basis in the first calendar quarter of 2011 (1Q11) to 7.2 million units worldwide, according to the International Data Corporation (IDC) Worldwide Quarterly Media Tablet and eReader Tracker. Looking forward, however, IDC raised its shipment forecast for 2011 to 53.5 million units from a previous projection of 50.4 million units.

For 1Q11, the seasonal trends typically found in more mature consumer electronics and computing categories had a notable impact on the burgeoning media tablet market, suggesting that demand for the category may not be quite as strong as recent media hype suggests. The eReader market (which IDC counts separately) experienced similar seasonality, undergoing a sequential decline in shipments to 3.3 million units as the post-holiday season proved to be challenging for that category. However, eReaders enjoyed 105% year-over-year growth as the devices continue to grow in overall popularity, particularly with the introduction of color devices, such as Barnes & Noble’s Color Nook. (Note: Media tablets have been shipping less than a full year and year over year growth comparisons are not yet available.)

Apple’s iPad and the recently introduced iPad 2 continue to dominate the media tablet market, as other vendors have had a more difficult time finding market acceptance for their products. But even Apple’s shipments for the quarter were well below expectations. Some supply-chain hiccups on screens as well as the pre-release announcement of the iPad 2 several weeks before its actual availability combined to have a noticeable impact on the company’s shipments for the quarter.

Mobile phone vendors, such as Samsung and Motorola, who have focused their distribution through the telco carriers, found moderate success with their media tablets, but sales were largely stymied by many consumers’ unwillingness to sign up for the 3G/4G data plans that the carriers typically require along with these devices. As an operating system, Android-based devices grew to 34% of the total, a share increase of 8.2 points over the previous quarter.

For eBooks, Barnes & Noble’s Color Nook helped the company to take the lead in the eReader market for the first time. Amazon’s Kindle was second, but the lack of a color offering has clearly impacted the company’s previous dominance in the eReader market. IDC forecasts the worldwide eReader market to ship 16.2 million units in 2011, a 24% increase over 2010.

“Like the PC market, Media Tablets had a bit of a challenging quarter in Q1, as concerns about general macroeconomic issues and the post-holiday letdown took a toll on demand,” said Bob O’Donnell, IDC Vice President, Clients and Displays. “We expect the rest of the year to be much stronger, but we believe vendors who continue to focus on the telco channel for distribution will face serious challenges.”

“Although media tablet sales were not as high as expected in 1Q11 due to slower consumer demand, overall economic conditions, and supply-chain constraints, we believe with the entrance of competitive new devices in second half of 2011, the market will sell close to 53 million units for the year and continue to grow long-term,” said Jennifer Song, IDC Research Analyst.

During its earnings call on Tuesday, Barnes & Noble’s chief executive officer William Lynch discussed several figures related to book sales — the most interesting of which is that eBooks are flying off the digital shelves. “We now sell three times as many digital books as all formats of physical books combined on BN.com,” Lynch said during the call, noting that the Barnes & Noble NOOK’s market share has increased slightly to 27%, up from 25% last quarter. Similarly, the firm’s NOOK business saw nearly 300% growth over the same quarter last year. Brick and mortar store sales were down 3% for the quarter. We can’t say we’re that surprised by the figures, after all, the new NOOK convinced us to switch to eBooks.

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Barnes & Noble took the wraps off of its latest eReader, the “All-New NOOK,” just last month. Its grayscale screen strays from the NOOK Color, and while the device still runs Android, it looks and feels much more like a traditional eReader. However, the new NOOK has a brand new E Ink Pearl display that not only works as a touchscreen, but refreshes less often than other eReaders and transitions faster. I’ve been using the new NOOK for the past week extensively, staying up late at night reading and pulling the NOOK out on the subway for quick page turns between stops. At $139, the NOOK is competitively priced with the Wi-Fi Kindle, but is it good enough to be your next (or first) eReader? My full review is after the break.

Hardware

Remember going to the library and picking up a thinner book and thinking to yourself at least this won’t be a pain to lug around? That’s the exact feeling I had the first time I picked up the new NOOK, and it’s the same feeling I get every time I pick it up. The NOOK Simple Touch eReader is 6% thinner than the original and 35% lighter. It measures 6.5in x 5.0in x 0.47in, which is about the size of a small paperback. Of course, the best part is that the NOOK can pack up to 1,000 books and magazines, and there’s even a microSD card slot for adding more storage. At 7.48oz, the NOOK is light, too, so it’s never noticeable inside a bag. In fact, during one dinner I pulled the NOOK out of my pocket and a friend remarked “Whoa, you can fit that in your jeans?” Yep.

The entire body around the device’s 6-inch display, which has a 50% greater contrast than the first edition NOOK, is a soft touch rubbery material. The NOOK feels very sturdy and I doubt you’d have much of an issue with cracking if it fell off of a coffee table. There’s a microUSB charging port on the top of the eReader, and there’s also a hatch on the right side for adding a microSD card.

There are four physical buttons surrounding the display that can be used to quickly navigate forwards or backwards through a book. I was a little confused by which button performed each function at first: when you turn the page on a book it doesn’t always reflect the actual print book page, so it can sometimes be difficult to tell if you’ve stepped forwards or backwards in the story. These buttons worked well and I adjusted to them after about five minutes of reading. You can also customize which button does what.

User Interface

The All-New NOOK’s user interface is exactly what I want out of an eReader. The main home screen shows a thumbnail your of latest book, magazine, or newspaper and how far into it you are; you can tap it to quickly resume reading the book where you left off. However, there’s also a list of new available reads to the right of that icon, and below both there’s a large area with suggestions on what to read next. These suggestions — large icons of the book covers themselves — are pulled in from what your Facebook, Twitter or Google friends are reading. If you have your Facebook, Google, or Twitter account setup on the NOOK, you can also quickly share the title you’re reading with your friends.

There’s an on-screen keyboard that pops up from the bottom of the screen whenever necessary. The keys are on the smaller side given the device’s compact design, but the keypad is actually pretty easy to use. You’re not going to be sending long emails from the NOOK, and it’s definitely sufficient for quick searches as is intended. At any time you can press the home button below the screen to navigate to the settings, back to the home screen, or change between seven text sizes or six font styles.

The all new NOOK is equipped with support for Wi-Fi networks, which means you’ll only be able to download books when there’s a Wi-Fi connection available. The 3G Kindle, by contrast, allows you to download books from anywhere. This was never an issue for me, since I am usually only reading a few books at a time, but it could become an issue if you forgot to buy the newspaper before hopping on the train. Wi-Fi was a breeze to setup, thankfully, and books downloaded in just a few seconds.

Reading Experience

I absolutely loved using the NOOK Simple Touch Reader for… reading. I stayed up more than a few nights reading a Jay McInerney novel I’d been meaning to read, and appreciated being able to quickly read an article in the latest edition of Foreign Affairs magazine on the subway.

The only reason I haven’t purchased an eReader for personal use yet is because I absolutely despise the refresh flicker that E Ink technology typically exhibits when you advance to the next page. The all new NOOK eliminates that almost entirely. Pages only refresh after the sixth page turn, so text appears to just quickly morph each time you want to advance further in a book. I’m in love with it.

The one issue with the refresh technology is that sometimes a page won’t fully refresh, and so there’s a little ghosting from the previous screen on the new one. This only happens when navigating around menus and the main home screen, however, so it didn’t interfere with my reading experience. It’s also easily resolved by moving to another menu option.

Unlike the Amazon Kindle, the new NOOK doesn’t offer a full-blown web browser. You can secretly access one by searching for a web address in the search box, but most sites don’t load properly. Perhaps this is a feature that Barnes & Noble will activate in a future update, but I wouldn’t rely on it.

Battery

I’m not sure that a battery life section is necessary here, because the NOOK’s battery life is insane. Barnes & Noble says it will last for two months with the Wi-Fi off, but I haven’t had the unit long enough to confirm it. The point is: you don’t need to worry about charging the all new NOOK. It uses a microUSB charger, too, so you can simply carry your cell phone’s charger around (unless you use an iPhone… or a Veer, or something) and use that whenever needed.

Conclusion

The choice between going with a Barnes & Noble eReader and an Amazon reader is a tough one. Amazon offers the new “Kindle with Special Offers” for $114, which is surely an attractive offer to some (in fact, it’s currently the best selling Kindle). The NOOK and Kindle also have different book stores, of course, so if you’re upgrading from a Kindle you won’t be able to take your old books with you — at least, not without a few workarounds.

But for me, it comes down to the overall reading experience, and Barnes & Noble has pushed the current eReader technology boundaries with the new NOOK. Its Pearl E Ink touchscreen display meant I didn’t have the extra bulk of a physical keyboard, and also that the pages refreshed less often — an annoyance that has delayed my personal entry into the eReader market. Most of my previous eBook purchases have been through my Amazon Kindle account — I read books on my phone, computer, and tablets pretty regularly — but the All-New NOOK has convinced me it’s time to make the switch.

On Wednesday Barnes & Noble announced that it is now shipping its brand new NOOK eReader to customers who pre-ordered the device, and that new customers will still get their devices by Father’s Day. The updated NOOK offers a 6-inch touchscreen display with new E Ink Pearl technology, access to 2 million books, and a single hardware button that should provide for a much more intuitive experience. We found the new E Ink display to be “leaps and bounds” better than the original during our hands-on with the eReader, so we’re definitely excited to see it make its debut this weekend. The NOOK will be in-stock at Barnes & Noble locations for $139.99. Hit the jump for the full press release.

Barnes & Noble Now Shipping The All-New NOOKTM,
The Simple Touch ReaderTM

Pre-Ordered Devices Arriving to Customers Ahead of Schedule, 
New Orders at www.nook.com Will Ship Immediately, in Time for Father’s Day
Experience the Easy-to-Use Touchscreen eReader for Everyone in Barnes & Noble Stores Beginning Tomorrow; In-stock This Weekend

New York, New York – June 1, 2011 – Barnes & Noble, Inc. (NYSE: BKS), the world’s largest bookseller, announced that it began shipping its All-New NOOK yesterday, getting pre-ordered devices to customers well ahead of schedule. New online orders for The Simple Touch Reader are now shipping immediately for delivery in time for Father’s Day and summer reading. Customers visiting one of Barnes & Noble’s more than 700 stores will be able to try live NOOK demonstration units beginning Thursday, and will find product in-stock in stores beginning this weekend.
The All-New NOOK, introduced by Barnes & Noble just last week, is the easiest-to-use, most intuitive eReader available, with best-in-class battery performance of up to 2 months on a single charge. The device is ultra-light and portable and features a 6-inch full touchscreen with the most advanced E Ink Pearl display for crisp, clear reading even in bright sunlight. NOOK customers can access the world’s largest bookstore of more than 2 million books, magazines and newspapers, available via Wi-Fi®. The All-New NOOK is $139 in Barnes & Noble stores and online at www.nook.com.
“We’re excited with pre-order demand for the All-New NOOK to date and are very pleased to deliver this easy-to-use device to our customers earlier than committed,” said William Lynch, CEO of Barnes & Noble. “We welcome customers to visit their neighborhood Barnes & Noble store to learn more about NOOK and experience our new light, portable, touch eReader.”

Amazon on Monday revealed a new discounted version of its popular Kindle eBook reader. Amazon’s announcement came on the same day Barnes & Noble announced its all-new NOOK eReader. When asked during a Q&A session after Monday’s press conference if Barnes & Noble would ever consider releasing an ad-supported NOOK, CEO William Lynch laughed and said it was highly unlikely — but Amazon seems to be having some success with the ad-supported model. Joining the company’s $114 ad-supported Wi-Fi Kindle is the new $164 Kindle 3G, which gives consumers the option of saving $25 and dealing with advertisements. The device is otherwise identical to the standard Kindle 3G, which features a Pearl E Ink display, a full QWERTY keypad and free 3G connectivity. Hit the break for the full press release.

Introducing the Lowest Price 3G E-Reader – Kindle 3G with Special Offers for Only $164 Same features as latest-generation Kindle 3G – free 3G wireless, Pearl E Ink display, up to two months of battery life and more – plus sponsored screensavers and money-saving special offers

SEATTLE, May 24, 2011 (BUSINESS WIRE) –

(NASDAQ:AMZN)–Last month, Amazon.com introduced Kindle with Special Offers, a new member of the Kindle family that gives customers access to money-saving special offers. Just five weeks later, Kindle with Special Offers became the bestselling member of the Kindle family in the U.S. Today, Amazon announced that it is now making special offers available for Kindle 3G. Kindle 3G with Special Offers is available starting today for only $164 and ships immediately. At just $164, Kindle 3G with Special Offers is the lowest price of any 3G e-reader, and includes the latest Pearl electronic ink display. Learn more about the entire Kindle family, including the $114 Kindle with Special Offers and the new $164 Kindle 3G with Special Offers, at www.amazon.com/kindle3G.

“Kindle is the bestselling e-reader in the world. It’s been just six weeks since we introduced the new $114 Kindle with Special Offers, and already customers have made it the bestselling member of the Kindle family,” said Jay Marine, Director, Amazon Kindle. “In response to customer requests, we’re now making these money-saving special offers available for Kindle 3G. You will get all the features readers love about Kindle 3G – free 3G wireless, global wireless access, Pearl electronic ink display that’s easy to read even in bright sunlight, access to over 950,000 ‘Buy Once, Read Everywhere’ Kindle books – all for just $164 – the lowest price for any 3G e-reader.”

Special offers that will be available in the coming weeks include:

• $10 for a $20 Amazon.com Gift Card – customers loved this offer, so we’re making it available again in time for Father’s Day
• Save up to $500 off Amazon’s already low prices on HDTVs with a unique 20% discount on 200 HDTVs from brands including Sony, Panasonic, LG, and VIZIO
• $1 for a Kindle book, choose from thousands of books including Water for Elephants and the Hunger Games trilogy
• Spend $10 on Kindle books and get a free $10 Amazon.com Gift Card

Kindle 3G with Special Offers includes all the same features that helped make the third-generation Kindle the #1 bestselling product in the history of Amazon.com:

• Free 3G wireless , no annual contracts, no monthly fees
• Global 3G coverage means books in under 60 seconds in over 100 countries and territories
• Paper-like Pearl electronic ink display, no glare even in bright sunlight
• Lightweight 8.7 ounce body for hours of comfortable reading with one hand
• Up to two months of battery life with wireless off eliminates battery anxiety
• Kindle Store with over 950,000 books – largest selection of the most popular books
• Seamless integration with free “Buy Once, Read Everywhere” Kindle apps for Android, iPad, iPod touch, iPhone, PC, Mac, BlackBerry and Windows Phone

Kindle 3G with Special Offers is available for immediate shipment to customers in the U.S. at www.amazon.com/kindle3G.

Learn more about the new Kindle 3G with Special Offers at www.amazon.com/aboutkindlespecialoffers. Advertisers and agencies interested in learning more about Kindle sponsorship opportunities can contact kindle-sponsorships@amazon.com.

We just spent some time with Barnes & Noble’s just-announced eReader, the all-new NOOK, and we have to say… we’re impressed. From the size, to the design, to the gorgeous new E Ink Pearl display, this device is leaps and bounds better than the previous-generation NOOK. What’s more, we think it will definitely push Barnes & Noble even further in the growing eReader space, and it should have the team over at Amazon working overtime on its next Kindle design. The exterior of all-new NOOK is composed entirely of soft-touch rubber that feels amazing compared to the hard plastic found on other readers. The new E Ink display is fantastic, and we definitely appreciated the work Barnes & Noble put into improving the seizure-inducing page transitions that plague all eReaders. They’re still there, but they’re much improved compared to older readers. The addition of a 6-inch touchscreen makes interacting with the device much more enjoyable than non-touch eBook readers, and it also helps make the size of the device perfect for carrying in a small bag or even a coat pocket. Barnes & Noble’s is taking pre-orders for its all-new NOOK starting now, and the device will begin shipping on or around June 10th for $139. In the meantime, definitely check out our hands-on gallery below!