Saturday, August 28, 2010

Best Buy to sell Barnes & Nobles Nook e-reader

Phil Wahba NEW YORK Mon Apr 12, 2010 6:22pm EDT Related News Apple"s iPad debuts strongly, but key tests remainTue, Apr 6 2010Apple"s iPad debuts strongly, but key tests remainMon, Apr 5 2010Publishers see pricing event with iPadMon, Apr 5 2010Publishers see pricing event with iPadMon, Apr 5 2010Amazon, publishers set upon e-book pricing deal: reportFri, Apr 2 2010 The Barnes  Noble nook, a Wireless eBook Reader, is seen during a headlines discussion in New York Oct 20, 2009. REUTERS/Shannon Stapleton

The Barnes Noble nook, a Wireless eBook Reader, is seen during a headlines discussion in New York Oct 20, 2009.

Credit: Reuters/Shannon Stapleton

NEW YORK (Reuters) - Barnes Noble Inc will sell the Nook electronic-book reader at Best Buy Co Inc, expanding placement as it faces flourishing foe with the entrance of Apple Inc"s iPad.

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The understanding will put the $259.99 Nook in Best Buy"s 1,070 stores commencement on Apr 18. Best Buy will be the initial and usually sequence to lift the device alternative than Barnes Noble, the largest U.S. featured item bookstore chain, putting the wiring seller at the core of the fast-growing e-reader market.

The disdainful understanding calls for Best Buy to additionally embody Barnes Noble"s BN eReader program on a little of the personal computers and smartphones it sells. Currently, the Nook is accessible at Barnes Noble"s website and 723 bookstores.

The understanding with Best Buy will severely enlarge the Nook"s accessibility and capability to contest with the not long ago launched iPad, a unstable computing and party complement that additionally functions as an e-reader and is sole at Best Buy in further to Apple stores.

Along with the iPad and the Nook, Best Buy additionally sells Sony Corp"s Reader. The alternative vital player in the e-reader wars, online tradesman Amazon.com Inc, sells the market-leading Kindle on the own web site.

"This partnership provides them (Barnes Noble) with an one some-more placement channel, that is vicious to pushing sales of the Nook," pronounced Michael Souers, an researcher with Standard Poor"s Equity Research.

Souers, who confirmed his sell letter of reference on the batch but lifted his cost aim to $19, pronounced that the sale of the eReader program was the some-more critical piece of the understanding since it would coax sales by augmenting the series of inclination on that Barnes Noble"s e-bookstore is available.

Unlike Amazon, whose downloads are not concordant with competing e-readers, Barnes Noble"s e-bookstore is "device agnostic" -- definition owners of the iPad or Sony"s Reader can download titles from the site.

Barnes Noble shares sealed down 52 cents or 2.3 percent at $22.25 on the New York Stock Exchange. Best Buy rose 34 cents or 0.8 percent to $45.23.

BEST BUY A DESTINATION

Best Buy is operative to compute itself from the likes of Amazon and Wal-Mart Stores Inc, and the Nook understanding helps set it detached in a fast-growing wiring segment.

"It"s an critical difficulty for Best Buy," pronounced Ross Rubin, an senior manager senior manager of industry investigate at investigate organisation NPD Group. "Best Buy really wants to settle itself as a end for new technologies."

Apple pronounced last week that it had sole about 450,000 iPads in the initial couple of days.

Barnes Noble and Amazon don"t yield sales sum for their e-readers, but each claims the device is enjoying strong sales.

Barnes Noble launched the Nook in October, aiming to take on the Kindle and Sony Reader in time for the holidays; but the device usually arrived in stores in Feb after a series of prolongation delays.

The association is focusing on the expansion of the e-book marketplace to overcome a long-term sales decrease in earthy books.

In a investigate note on Monday, Goldman Sachs foresee that U.S. sales of e-books would climb by 47 percent per year to reach $3.2 billion by 2015, or 12.8 percent of sum book sales, up from 3 percent this year. Goldman expects earthy book sales to trip 1 percent per year over that period.

Goldman additionally foresee that Apple"s share of the e-book marketplace would burst to 33 percent in 2015 from 10 percent this year, whilst Amazon"s marketplace share would tumble to twenty-eight percent from 50 percent. Barnes Noble is approaching to obstacle fifteen percent of e-book sales in five years, up from 5 percent in 2010.

Last month, Barnes Noble declared William Lynch, who oversaw the growth and launch of Nook, as arch senior manager officer. During the legal holiday quarter, allied sales at Barnes Noble"s earthy stores fell 5.5 percent, whilst online sales surged 32 percent.

(Additional stating by Brad Dorfman in Chicago; modifying by Gerald E. McCormick, Lisa Von Ahn and Bernard Orr)

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