Consumer Reports Electronics Issue: Barnes & Noble Praise; Updated Tablet Rankings

by Holly Shoemaker

Consumer Reports Annual Electronics Issue has hit the stands. In this part one of two blogs, I have recapped the latest trends and rankings for tablets, with smartphones to follow. These are new ratings when compared to Consumer Reports Buying Guide 2012.

Tablet Buying Guidelines

• Trends – The non-profit agency says to keep looking for better screen displays at lower prices. Besides mentioning the obvious choices of the Kindle Fire HD and Google Nexus, Barnes & Noble’s nine-inch Nook HD+ at $270 is described as "an even bigger game changer." The model features a retina display close to Apple's and a lower price point. At the time of print, the model was unavailable for testing.
• Still an App Gap – Apple retains its praise for its selection, quality and innovation of apps over Android. Magazines also get a special mention as many have their own apps for iPad. Barnes & Noble's appears to want to gain ground on Apple. The Nook HD+ has a more-square design, specifically designed to make magazine reading easier. Barnes & Noble also features the 100 best-selling magazines.
• Laptop-Like Tablets – While the Microsoft Surface debuted too late for testing, many tablets feature more laptop features, like Samsung’s Series 5 and Series 7 Slate models.

Tablet Rankings

In the seven-inch range, Samsung still reigns. The Galaxy Tab 7.7 ranks first with a score of 82, followed by the Pantech Element at 77. In the WiFi only category, the Toshiba Excite comes in first with a score of 80, followed by Google Nexus at 77 and the Amazon Kindle Fire HD 16 GB at 77.

With little surprise, Apple remains at the top in the nine- to 12-inch category. In the WiFi plus category, the iPad scores an 85, followed by the iPad 2 at 81. Samsung Galaxy Note 10.1 ranks second with 83, after the iPad with the same score. Asus has many models that also make the list.

No Price War in iPad mini Debut: Amazon to Benefit

by Holly Shoemaker

As expected, Apple unveiled the iPad mini today, and with a degree of arrogance, Apple showed it had no intentions of entering into a pricing tablet war.

iPad mini Details at a Glance

• The screen is about two-thirds the size of the iPad at 7.9 inches and half the weight.
• Apple priced the iPad mini at $329, a price point that lies between the iPod Touch at $299 and the iPad 2 at $399.
• The device has two cameras, one on the front and another on the back.

Consumers may begin ordering the iPad mini on Friday, October 26, 2012.

Surprise Announcement

In another move that has already started to infuriate users, Apple made a change to its full-sized iPad, which comes only six months after its launch. It announced a new chip, called the A6X that delivers twice the CPU and graphics performance of the A5X, the processor that came out in earlier this year. The next iPad launch was not expected until March 2013. It appears that Apple wanted to steal some of Microsoft’s thunder this week as the new Surface will launch. Consumer may also order the new and improved iPad on Friday.

Concluding Thoughts 

Apple’s move seems confusing from a consumer standpoint. It had the opportunity to up the tablet war. However, Apple’s pricing keeps in line with its thinking – that consumers will pay more for an Apple product, and that the company cares more about profiting from sales of the device, rather than accessories and apps.

Apple’s arrogance could result in a win for Amazon whose expanding Kindle line has tablets and e-readers at price points that should appeal to most consumers. Apple’s stock fell after the announcement while Amazon’s shares rose 53 percent.

Kindle Direct Publishing: Easier than iBooks?

by Holly Shoemaker

Earlier in the year I discussed how education by Apple will not reach those in need and how the Department of Justice (DOJ) looked into e-book price fixing. In addition to using e-books to try to transform the education industry, individual authors look to do the same with self-publishing. To that end, Amazon’s expanding Kindle line does not just provide competition with iPads, but an outlet for individuals to become their own publishers.

Amazon announced that 27 out of its top 100 Kindle books used Kindle Direct Publishing. Instead of dealing with publishers, Amazon says authors publish directly from its service, and authors have the ability to participate in the company’s 70 percent royalty program.
 
Better Choice than iBooks?

Both outlets give authors options not always available through traditional book publishers. Self-publishing via Amazon provides a less stringent way to get published when compared to Apple's iBooks. While Apple released the iBooks Author is January 2012 as a competitor to Kindle, it makes it more difficult for self- publishers. As it does with apps, Apple has final approval of what it makes available, and published books require an ISBN. With Kindle Direct Publishing, authors choose the royalty program and publish their content.

Amazon Stays True to Profit Model; Peculiar Showcase Tablet Prior to FCC Approval

by Holly Shoemaker

As expected, Amazon announced its new Kindle lineup on Thursday. The standout item, designed to compete with Apple's iPads, but at a lower price point, is the Kindle Fire HD 8.9" 4G LTE Wireless for $499. Amazon expects the item to ship on November 20, 2012. However, there is one issue with the device – it has yet to receive Federal Communications Commission (FCC) approval.

Potential Roadblock?

I received the email from Amazon shortly after the company’s announcement on Thursday. The email said the following, “The 4G device has not been authorized as required by the FCC. This device is not, and may not be, offered for sale or lease, or sold or leased, until authorization is obtained.”

The FCC must approve tablets and other devices before companies start selling them. The FCC checks to ensure electronics do not interfere with signals and that they adhere to safety standards. Amazon expects to receive approval by the November 20, 2012 shipping date, but its move to announce a non-approved tablet seems unusual. At the same time, the company clearly has faith in its direction and expects to receive the required approval in time.

My Additional Findings

Amazon has once again updated its “Compare Kindles” section and the Kindle Fire HD is now available for $199 with16 GB of storage, and the tablet will start shipping on September 14, 2012. The Kindle Fire has a list price of $159, which will also ship on September 14, 2012.

e-Readers Not Forgotten

Amazon also introduced the Kindle Paperwhite, showing consumers the company still believes in its e-readers. E-readers still provide a good choice for those mainly interested in online books.

Concluding Thoughts

Amazon designed the Kindle brand for expansion. Its ability to offer different price points depending on a user’s needs and budget should appeal to a larger consumer base. While that in itself differentiates Amazon from Apple, Amazon has remained true to its profit model. While Apple makes more money off its devices, Amazon remains focused on content and accessories, showing that it understands the company’s revenue stream. Owning a device is only the start – customers need to build libraries, stream video and download apps, to name a few, to truly get the most out of owning a tablet.

Amazon Stops Directly Selling Kindle Fire: Hotter Version Expected

by Holly Shoemaker

On Thursday, Amazon announced that it sold out of its Kindle Fire. This has caused many to speculate the company halted production to make way for a new model.

While Amazon never reports how many models of which Kindle it has sold, the company reported that it garnered 22 percent of the tablet market share over a nine-month period. This makes it the second most popular tablet after Apple’s iPad.

My Findings

I checked out Amazon and sure enough, consumers may buy the Kindle Fire from other sellers, but not directly from Amazon. In the “Compare Kindles,” section, Amazon no longer lists its $199 price for the Kindle Fire. More news to follow next week as Amazon should debut some new brand items at a scheduled event.

End of the e-Reader Market?

Overall, tablets have contributed to a decline in e-reader market share. ABI research reported that e-readers peaked last year and estimates that in 2012 e-readers will have sold 11 million units worldwide, down from 15 million in 2011. Still, for consumers who mainly want to read books on a device, e-readers provide a viable alternative to tablets. For those looking to decide between a tablet or e-reader, the Consumer Reports Buying Guide 2012 rankings should assist.