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. 

Will Google Nexus Tablet Take Away Kindle and Nook Market Share?

by Holly Shoemaker

While the new iPad is the news of the weekend, reports still say that a Google Nexus tablet will happen, with pricing ranging from $149 to $199.

Another Android Tablet?

Does the world need another tablet? Probably not, but if successful, the tablet could give the Kindle Fire and Nook Tablet some competition. While the Kindle and the Nook operate on an Android platform, they run their own app stores. Given this fact, Google may find it logical to develop a tablet that competes. However, brands such as Asus, Samsung and HTC have failed to connect with consumers with seven-inch tablets.

Will Users Switch?

Many users say the Google Nexus tablet will not make a difference in the ongoing tablet wars. Users have said they want Google to focus on better apps. This is a point that will keep differentiating Google from Apple as Apple has a more stringent screening process in place. While that may take more lead time for developers, putting that time in prior to going live means better apps.

At the price point, and depending on the available apps, people could switch from Kindle to the Google Nexus tablet. It will come down to marketing and the apps. If those two components fail, I still see the Kindle line prospering even more.

RIM Releases PlayBook OS 2.0: Too Little Too Late?

by Holly Shoemaker

Research in Motion (RIM) released its latest upgrade for the PlayBook’s operating system on Feb. 21, 2012. This release comes almost a year later from when RIM should have deployed the upgrade.

Release Details

• The upgrade includes built-in email, calendar and contacts for the PlayBook.
• The PlayBook OS 2.0 is a free download. A user may now use a BlackBerry as a keyboard or mouse with the tablet.

Analysis of the Release

This release does little to regain interest with smartphone users. The public already knows the company has encountered a delay with its software platform for BlackBerry users. Because the PlayBook has not lived up to expectations, RIM will have to attempt to win back market share in the smartphone industry. The BlackBerry upgrade should take place later this year. While the company had to deploy the latest OS for its PlayBook, focusing on its smartphone users seems the company’s only hope.

While the company has 75 million subscribers, analysts report that RIM will continue to lose market share internationally, as the company has in the United States. Perhaps the latest figure regarding RIM’s net worth says it all – the company is now worth $7 billion. That is down from $75 billion a few years ago.

Concluding Thoughts

RIM still has many challenges to overcome. While the company appointed a new CEO last month, has slashed tablet prices and has finally released the PlayBook’s latest operating system, many of these moves may come too late.