It’s surprising to think that E-Readers and tablets were popularized with the introduction of Amazon’s Kindle six years ago. Since then Apple and Barnes & Noble, among other companies, have released their own tablet products as well as the updated software versions. This easily transportable technology allows the user to read books, watch movies, the whole shebang.
Recently, Barnes & Noble made a surprising announcement that regarding their tablet technology. With the purchase of a Nook HD+ tablet Barnes & Noble will give away a Nook Simple Touch E Ink reader for free. Barnes & Noble is essentially trying to get rid of a device that was predicted to be their best seller.
E-reader sales have dropped significantly, says iSuppli. For Barnes & Noble, sales had dropped 26% in February. The decline in sales was blamed on high inventory charges and operating expenses. Since these devices were produced in large amounts due to the prediction of it selling well, a large inventory built up and Barnes & Noble are now forced to “sell” the devices at a loss.
Also surprising, this announcement was made during a time when electronic devices are not expected to sell well. It would have been much more logical for Barnes & Noble to promote this sale during times of high sales, e.g. Black Friday or Christmas season, rather than a week before the Easter holiday.
What does this mean for Barnes & Noble? If their plan does not work, they will be operating at a greater loss than before they implemented this plan. Their sales could continue to decline and they could be faced with the same fate as Borders.
For more: http://www.nasdaq.com/article/can-a-free-ereader-save-barnes-nobles-nook-business-cm230054#.UU–UBysiSp