Monday, November 5, 2012

Barnes & Noble, Inc. (NYSE:BKS) slashes prices of some products

For the second time this year Barnes & Noble, Inc.(NYSE:BKS) has slashed the prices of some of its e-reader and tablet PC just before the start of the holiday season.

The company announced price cuts in its Nook Colour and Nook Tablet on Sunday. The price of the Nook Tablet has dropped by $20 to $159 for the 8 GB model while the price of the 16 GB model has been reduced to $179.

The price of the Nook Colour has also been reduced to $139 from $159 before.

The range of Nook devices are now available from a price as low as $99 for the Nook Simple Touch up to $269 for the 9-inch Nook HD plus. In fact the price cuts come right after the recent launch of the Nook HD.

According to analysts, Barnes & Noble may be attempting to clear up its stock of previous devices and creating a market for the Nook HD.

The Nook Colour is rather unique in its segment as it is among the only colour version of an e-reader. Last year, Amazon decided to launch the Kindle Fire rather than a colour version of its popular Kindle e-readers.

The Nook Colour could continue to sell well at the lower price point along with the lack of competition with that specific design, Digital Trends commented.

Barnes & Noble has been competing against the much more popular Amazon devices as well as with devices belonging to Google, and has been forced to drop prices. It competes with other 7-inch tablets on the market including Amazon’s 16GB Kindle Fire HD and Google’s 16GB Nexus 7 at the $199 price point as well as the recently released 16GB iPad Mini at a much higher price point of $329.

In terms of pricing its 9-inch Nook HD plus is at a comparative advantage against Amazon's 16GB, 8.9-inch Kindle Fire HD which starts at $299 and goes up to $369 for the 32GB model

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