Amazon.com’s (AMZN) Kindle seems to be the only popular e-reader currently available in sufficient volume.
Barnes & Noble (BKS) recently sent out an email to customers who had pre-ordered their Nook e-reader, stating that they would not be able to meet the fulfillment schedule. Therefore, some customers who had expected the device by Christmas will now have to wait for Dec. 29.
Of course, BKS is well aware that the stakes are high, so it has decided to offer a $100 gift certificate to customers that did not receive the e-reader by Dec 24. This is a significant amount, considering the $259 price tag on the Nook is same as the Amazon Kindle.
The Nook is actually being offered ahead of schedule in an attempt to make use of the holiday season boost and limit the Kindle’s market share gains. However, the installed base of Kindles continues to increase. On the other hand, the hurried launch of the Nook first resulted in software issues and now order fulfilment issues. The company obviously misjudged demand, because a Nook ordered today will not be delivered until February.
The Sony (SNE) Reader is also out of stock, which leaves the field open for the Amazon Kindle. However, Sony is looking for other ways of dealing with Amazon. In a bid to improve content on the Reader, Sony has announced partnerships with 19 newspaper and periodical companies. While some of the publications are also available on the Amazon Kindle, others are not. Additionally, Sony has just one model offering wireless download, compared to all models for the Kindle. Additionally, an international version of the Amazon Kindle is also available.
All things considered, we continue to believe that the Amazon Kindle is ahead of the pack and will continue to be the leading e-reader for the foreseeable future.
Read the full analyst report on “AMZN”
Read the full analyst report on “BKS”
Read the full analyst report on “SNE”
Zacks Investment Research
