Is iPad off target and Nook Color in the sweet spot?

Has Barnes and Noble accidentally stumbled upon the sweet spot in the converged space between PCs and smartphones?

Their Nook Color device, with its Android operating system, is a significant step above just being an e-reader but it doesn’t have the pretension or the price of some of the tablets that are due to arrive, or are already, on the market. The device, in addition to providing excellent reading and media experiences, can also act as a storage facility for sharing presentations and other material. I’m a convert! It’s lightweight, easy to use and read and, as I have said before, has instant-on capability, so ideal for the moments when you feel compelled to share that key slide in a quick sales pitch!

A recent study by the Boston Consulting Group implies that Barnes & Noble could have a real winner. BCG’s report, released just before Apple’s announcement of a second generation iPad on Wednesday, finds that the consumer’s growing preference is for multi-use tablets over e-readers but says that the “sweet spot” for pricing will be below $200. The fact that the Nook Color appears to be an enhanced reader and is priced at $249 indicates that it’s very close to that sweet spot.

The ability to access the online bookstore, participate in magazine subscriptions and have special offers focused on reading and leisure interests is supplemented by a growing number of applications that are available on the Android market. The Android application developer community is the secret weapon and truly enhances the value of the Nook Color to its users. According to an Engadget review, Barnes & Noble plans to launch its own Android tablet app store in the first quarter of 2011, providing a consistent, compatible application experience.

Barnes & Noble could also have the upper hand due to the fact that Apple is increasingly leveraging its iTunes store’s quasi-monopoly to extract value from the ecosystem. The most recent announcements of the 30% tax on all media content sold via the store means that the company is penalizing consumers and increasing the total cost of ownership for the iPad experience.

Barnes & Noble, with its existing books, magazine and media distribution capability, is in a strong position to offer a compelling and competitively priced reading and entertainment experience on a device that also provides Internet access and a wide variety of online applications. Combine this with an opportunity to create an enthusiastic community of users who also like to frequent the bricks and mortar stores for coffee and special offers, and the Nook Color could be the best thing since the invention of the paperback for the publishing, media and bookstore industry.

If you would like to learn how to holistically assess the market place and take advantage of Digital Life opportunities, contact us at +1 847-478-1633 or visit our website at www.keysoglobal.com.

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4 Responses to “Is iPad off target and Nook Color in the sweet spot?”

  1. Issac Maez says:

    Hello, great blog! This post was very useful, keep up the good work!

  2. Asuncion says:

    This is something I have to find more information about, appreciate the posting.

  3. I see your point very well and it has its merits

  4. ขุขันธ์…

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