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Old 08-30-2011, 02:41 PM   #6
fjtorres
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Quote:
Originally Posted by ilovejedd View Post
Hmm, it'll certainly be interesting to know the breakdown of Barnes & Noble's hardware sales (e-ink vs LCD).
It's easy to be an armchair analyst: just assume.
Like:
NookColor has more buzz and less competition but eink Nook is cheaper and was recently refreshed, so a 50-50 split is not unreasonable.
Typical new reader buyer is likely to buy, say, 10 books a year averaging $6, so Eink buyers contribute $200 to the gross and NC buyers about $320, including a couple apps. Average? $260 per customer for the first, current year. (I'm neglecting ebook sales to previous year and cellphone customers, of course; I'm using a small envelope.)
If the recent quarter ran $277 million, they're looking at about $1.2-1.3 billion for a year (XMAS bump, NC refresh), which works out to 4.6-5 million Nooks.
That's about 2.3-2.5 million for each type of reader.

Substitute your own ratios if you don't like those numbers.
Anyway you slice-n-dice it, Nook is a billion dollar business...
...Which is seriously dragged down by the B&M stores.

And note that Kindle grosses are high and average selling prices lower, so Kindle really and trully is selling north of 8 million a year.

And the two dwarf everybody else on the planet combined.
Plenty of room to grow, too.

Last edited by fjtorres; 08-30-2011 at 02:44 PM.
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