Ebook Reality, What Is Hot Sells
June 22, 2010
I enjoyed “Barnes & Noble Confirms New $149 NOOK Wi-Fi, Drops 3G Model Price To $199.” The Barnes & Noble ebook reader is one of those adventures in US corporate innovation that provides fodder to the case studies used in MBA land. The news is that a price cut for the gizmo is in place. The article was quite circumspect and included the Barnes & Noble news release. Three points warrant the goose’s capturing them:
First, the price cut won’t make any difference. The product is not hot and the Apple iPad is. Without buzz, a price cut won’t work. Don’t believe me. Find a 12 year old. Offer the kid a Nook or an iPad. Which will the kid take? Let me know.
Second, companies that are essentially in the middle of deals often are not too good at manufacturing. Compare the first Kindle with the first iPad. Now compare the second Kindle with the Nook. Pick the better of the two devices and go back to the iPad. See any differences?
Third, lowering the cost will clear inventory. A price cut won’t stimulate Barnes & Noble’s revenue itch. The cost of the gizmo, the price cut, and the expensive in store promotions put this product in a tough spot.
So what’s the response of Amazon? Chopping the price of the Kindle. Boy, I am delighted I paid full price. Endears the company to me for sure.
Neither Barnes & Noble or Amazon are hardware pros. Are these devices the Pontiac Aztec’s of the ebook world? Just the view from Harrod’s Creek, and it is an opinion which makes the comments even less valuable.
Stephen E Arnold, June 22, 2010
Freebie
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