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Originally Posted by fjtorres
Spoken like a hardware vendor.
You're assuming that in consumers' minds the only thing that matters is the hardware specs. As if the products were generic and perfectly replaceable.
Problem is, ebook readers are a composite product.
When people buy an ebook reader, they're buying into an ecosystem, not just a hunk of glass and plastic. It is a long-term commitment.
Hardware is only part of the story.
Content is another part.
Services is yet another.
And the *company* that stands behind the product is also part of the equation.
People don't buy Kindles just because they want an ebook reader; they are buying access to *AMAZON'S* ebook ecosystem. Getting a hunk of glass and plastic is just the entry ticket.
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Completely agree with you on this point, and that's why I think Sony is flailing in this market. B&N has a great ecosystem and brand. Every B&N I go to, there are always people looking at their Nook products, so I think B&N and Amazon have a comparable ecosystem (in terms of book publications).
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Don't assume better marketting is going to make more people buy Nooks instead of Kindles. Especially after today.
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I think better marketing WILL help B&N, and I don't mean more TV ads or online ads. When the Fire came out, Amazon had an amazing amount of PR. All news outlets were quoting Jeff Bezos and Co. and the device generated a huge amount of interest. When the Tablet was announced, the press was mostly "meh". Marketing includes PR, relationships with news outlets to get coverage on products, generating excitement, etc. Maybe no one believes in B&N and that's why Amazon gets all the PR, who knows.
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Two other points:
1- Nook STRs are not as ad-free as B&N wants people to think. At least a third of the STR home screen is devoted to ads--for B&N products. Main difference from Kindles is that Amazon pays you for looking at *their* ads.
2- Nook sales for the holiday season were actually very good. 70% improvement for a company with at least 25% market share (as opposed to one in the single digits) is very good performance. Yet, B&N management somehhow expected *more*. "Shortfall" they called it: B&N management expected, prepared, and *needed* better than 70% year to year improvement for Nook. That sounds like inventory management issues.
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Good point in that B&N promotes books/best sellers on their devices. I suppose that's like walking into a bookstore and seeing a prominently displayed new release.
I also think you are correct in that B&N management most likely expected a >100% year on year growth in sales of their Nook devices. And this is where I conjecture that they would have seen better sales if Amazon had not stolen the show with their barrage of new devices and new prices. And since it was obvious Amazon was going to go all out with their Fire and new e-paper Kindles, B&N should have been better prepared or had a better/faster response to keep the spotlight on themselves.