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.

Consumer Reports Buying Guide 2012 Part Two: Rankings For Tablets and e-Readers

by Holly Shoemaker

Earlier in the week I discussed how Verizon topped Consumer Reports Buying Guide 2012 and summarized the guide's smartphone buying tips. For those more interested in tablets and e-readers, I have the rankings and advice for those too.

Tablet Buying Guidelines

• Portability – For those unconcerned with portability, Consumer Reports recommended buying a 10-inch screen.
• Viewing Angle – The guide recommended a wide viewing angle.
• Upgradable Operating System – Consumer Reports recommend to always look for an upgradeable OS.
• Apps – The guide encouraged consumers to opt for a tablet that offers a variety of apps as that will vary based on the OS manufacturer.

Tablet Rankings

In the six- to seven-inch range, the Samsung Galaxy Tab 3G 16 GB ranked first with a score of 73, followed by the WiFi model at 71. Research in Motion (RIM) made the list with its BlackBerry PlayBook WiFi 32 GB model with a score of 67. However, it was not a recommended buy, which should come as no surprise.

In the nine- to 12-inch range, Apple comes out on top with the iPad 2 3G with a score of 83. The Samsung Galaxy tab 10.1 ranked third with a score of 78.

e-Reader Buying Guidelines

• Screen Size – The guide recommended that consumers look for a six-inch screen as that provides the best value.
• Touch Capability – The guide recommended that consumers look for an e-reader that offers this feature to allow for easy content selection.
• Network – As the guide covered a certain period of time, it discussed more 3G capability. Consumer Reports recommended skipping 3G access citing that WiFi access costs less.

e-Reader Rankings

In the six- to seven-inch range, the Barnes & Noble Nook Simple Touch Reader ranked first with a score of 76, followed by Amazon's Kindle 3G and then the WiFi version with a score of 75. The Barnes & Noble Nook Color came in seventh with a score of 70.

Microsoft Surface to Enter Tablet Wars

by Holly Shoemaker

Microsoft unveiled its first Window 8 tablet, Surface, today at a last-minute event held in Los Angeles, Calif.

New Territory for Microsoft

This is the company’s first attempt at making its own tablet. The company said it needed its own hardware to complement its Windows 8 software.

The tablet features the following:

• A 10.6-inch HD widescreen display with an ultra-wide viewing angle and self-adjusting screen
• USB and micro SD card slots
• A built-in keyboard with a trackpad
• An integrated kickstand

Will Surface Compete?

To me, Microsoft is associated with business. In that sense, I could see the tablet appealing more to businesses – as a way to further integrate IT operations, especially among employees that travel. At the same time, to compete in tablet wars, Surface will have to appeal to consumers. Microsoft has branded its new tablet keeping in line with Windows 8 and the company even promotes entertainment and apps. Consumers and developers may see what Microsoft will offer by way of apps in its Windows Store, although that site still appears lean.

Does B & N Fit into the Picture?

Of course the lingering question for most is how Surface will compete with the iPad. However, I am curious to know more about what Microsoft plans to do with Barnes & Noble. Many have speculated that Windows 8 will become the default platform for future Nook tablets. If that becomes the case, Microsoft may be positioning itself to see how it may compete in the higher-end and lower-end tablet markets. At this time, Microsoft has not announced pricing or a release date for the Surface.

Samsung to Buy Nokia? Rumor Lacks Rationale

by Holly Shoemaker

On Friday, June 8, 2012, shares of Nokia’s stock rose six percent amid rumors that Samsung Electronics may buy the declining Finnish mobile device company. Analysts will not confirm that Samsung will in fact acquire Nokia, and the companies have failed to issue any

statements.

Pure Speculation

This latest smartphone rumor lacks rationale as Samsung does not have to improve its market position. The company has already overtaken Nokia to become the world's largest device maker. Its Galaxy line of phones have also connected more with customers than the Lumia 700 and 900, which Nokia hoped would help the company once again compete in the North American market.

While it is clear Google will gain many patents through its acquisition of Motorola Mobility, some analysts suggests that any patents Samsung would gain from Nokia, would not equal the costs of integrating the two companies.

The rumor also fails to address the Microsoft aspect, seeing as Nokia partnered with Microsoft on its Lumia line of phones. At this point, Microsoft appears a more logical buyer, unless the company has put its hopes of generating more revenue with Barnes & Noble and the tablet market. Stay tuned...

Will Microsoft Help Nook Overtake Kindle?

by Holly Shoemaker

Barnes & Noble (B & N) announced on Monday that it will partner with Microsoft in an attempt to make its Nook tablet more marketable.

Partnership Details at a Glance

Microsoft will invest $605 million over five years and gain a 17.6 percent share in B & N’s Nook market and its college bookstore. The newly-formed subsidiary is temporarily named NewCo. 

Benefits

The potential benefits tie into gaining market share:

• The move generates buzz for Windows 8, which launches in six months.  Microsoft also plans to discontinue its e-reader app in August 2012. NewCo will develop a Nook app for the touch-enabled Windows 8 operating system. While executives from neither side will confirm, it seems likely that future Nook tablets will run on a Windows-based platform, instead of the Android Market. In this sense, B & N is looking to Microsoft to establish itself to truly compete with Amazon just as Nokia has put its future in the hands of Microsoft for smartphones. In turn, Microsoft gets a chance to become part of the ever-growing e-book market. 
• The formation of NewCo shows that B & N and Microsoft understand the importance of gaining international market share. The needed cash that Microsoft has provided to B & N means the company has the ability to introduce the Nook bookstore on a larger scale.

Concluding Thoughts

The Nook has yet to truly rival Amazon’s Kindle Fire, and B & N could easily go the way of Borders. Partnering with Microsoft may become a risky move as Nokia is seeing in the smartphone market. It may come down to what platform future Nooks run on. If they run on a Windows-platform, they may see slower adoption just like the Window-based smartphones. 

DOJ Looks into e-Book Price Fixing

by Holly Shoemaker

The Wall Street Journal has reported that the U.S. Justice Department (DOJ) may sue Apple and five U.S. publishers, Simon & Schuster, Hachette Book Group, Penguin Group, Macmillan and HarperCollins for anti-trust violations related to price fixing of e-books.

Overview of Issues

At the center of the complaint is how Apple charged for e-books when it launched the iPad in 2010. Apple employed the "agency model," where publishers set the price for an e-book and Apple received 30 percent of the profits. This is the same as Apple’s education strategy. Apple also said publishers could not let rivals sell the same book at a lower price. This is the point that I see difficult to enforce and one that does conjure up concerns.

Prior to this launch, publishers sold books to retailers for half of the typical cover price. This allowed sellers to discount books for less than the cover price. Book publishers did not respond well when Amazon sold new best sellers for $9.99 to boost sales of its Kindle devices. Amazon also forbid publishers to offer discounts to other retailers. Those who accuse Apple of price fixing have some legitimate reasons to conclude Amazon did the same. The issue is whether it is legal or not, and that answer is, "It depends."

Publishers have also said that retailers such as Barnes & Noble would not have the ability to compete with discounting, like Amazon does. However, Amazon agreed to raise prices.

Concluding Thoughts

E-books operate differently than regular books. There has to be some leeway to ensure all parties get their fair shares, this includes consumers. Apple and other companies have the right to come to contractual agreements. The issue is sorting out if those agreements did violate anti-trust laws. On the surface it appears price fixing occurred, but the issue is also one of capitalism and honoring agreements - if they are legal of course.

Reports have circulated that some of these major publishers are in talks to settle this case. No matter the outcome, consumers keep benefiting. Consumers have already spent money on tablets, smartphones or e-book readers. They will expect to receive e-books at a cheaper cost. This could mean that e-books will become even cheaper for consumers.