At least Nooks distributed by Barnes & Noble. The book seller announced today it would no longer be developing Nook products, after the tablet business proved unprofitable with a negative EBITDA of $475 million reported today in B&N’s earnings release. According to the press release, “The company plans to significantly reduce losses in the NOOK segment by limiting risks associated with manufacturing.” They will, however, keep selling Nook HD and Nook HD+ tablets at what would seem a loss. And, create “a partnership model for manufacturing in the competitive color tablet market.”
Barnes & Noble is not abandoning the e-reader business though. The company will continue innovation and development of the Simple Touch and Glowlight readers.
The announcement will certainly give Amazon’s Kindle and Apple’s iPad some breathing room, as well as any full color tablet makers. But Forbes indicates Microsoft may consider continuing the Nook line. They do happen to own 17% in the Nook business.
To be clear, B&N isn’t entirely abandoning the Nook brand. The company indicated it will instead concentrate on Nook apps (version updates coming soon) and their distribution on other tablets.
Sources: Barnes & Noble, Forbes
