Barnes & Noble Rapidly Taking Over the Digital Books Market
Despite with the competition from Amazon’s (NASDAQ:AMZN) Kindle, Barnes & Noble (NYSE:BKS) pulled off a strong sales for its own e-reader during the holiday quarter. Sales of Nook e-books and devices rose 38 percent, helping the company increase its share of the U.S. digital books market to 30 percent, according to Chief Executive William Lynch.
By reducing the price of the Nook Color by $30 and temporarily discounting the most basic model during the holiday shopping season, Barnes & Noble was able to increase its market share by 3 percent. The newest Nook tablet, when released, will be priced $50 under the original version launched in November as Nook differentiates itself from the crowd by undercutting its competitors’ pricing.
Of course, “sizable investments” made during the third quarter, including an advertising blitz, made sales soar, though it did cut into profits, said Lynch. Barnes & Noble forecasts full-year sales in the $7 billion to $7.2 billion range, with Nook contributing roughly $1.5 billion.
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