Barnes & Nobel will no longer manufacture the Nook tablet

26 Jun

Monday, Jeff brought you the story of Barnes & Nobel extending their huge Father’s day discounts on the Nook HD and the Nook HD +. The reason at the time that Jamie Iannone, President of NOOK Media wrote in the press release was to kick off the summer reading season. In a subsequent press release outlining their 2013 year end finances that reason has changed to turning the Nook tablet over to a third-party.
“Our Retail and College businesses delivered strong financial performances in fiscal year 2013,” said William Lynch, Chief Executive Officer of Barnes & Noble. “We are taking big steps to reduce the losses in the NOOK segment, as we move to a partner-centric model in tablets and reduce overhead costs. We plan to continue to innovate in the single purpose black-and-white eReader category, and the underpinning of our strategy remains the same today as it has since we first entered the digital market, which is to offer customers any digital book, magazine or newspaper, on any device.”
The hope of passing the manufacturing is that it will defer some of the expense to stop the bleeding from the Nook division of Barnes & Nobel. Compared to last year the Nook division had a 34% drop in this latest quarter and 16.8% drop for the entire year. Part of this downward spiral can be attributed to the success of Amazon’s Kindle HD and the trend of manufacturers turning to mini-tablets increasing the competition with the Nook tablet.
Barnes& Nobel has not said who this third-party will be but since Microsoft has a small interest in the Nook they could have a hand in who makes the Nook tablets. It could also mean that the Nook will change from an android-based tablet to a Windows-based tablet. One thing is certain though after the holiday season the Nook as we know it now dead.

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