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Barnes & Nobles Announces Nook Color; will Amazon also join the fray?

- By Thomas McKinney

The New Nook Color.


By Tom McKinney

Last month both Amazon and Barnes & Noble made headlines in the world of e-books, although for entirely separate reasons. On the 22nd, Amazon announced that their Kindle e-book readers would soon support a lending feature similar to that which Barnes & Noble has had implemented since the launch of their Nook e-book reader. Just like the Nook, Amazon's Kindles will have the ability to "lend" an e-book for up to fourteen days (books that are lent out cannot be read by the lender during the lease) to anyone else also equipped with a Kindle. Many are saying this is the death knell for Barnes & Noble's Nook; there remain very few incentives to convince buyers to choose Barnes & Noble over Amazon - the lending ability the last major one.

However, just three days after Amazon made their announcement, Barnes & Noble announced a new Nook e-book reader, dubbed the Nook Color. And this one's quite a bit different from their original: it has a full color display. The e-ink is gone and has been replaced by the same type of display used with Apple's iPad. I've written previously about full color e-book readers, but this is the first time one of the major, established e-book reader retailers has put out an effort in color.

As recently as late May, Amazon's CEO Jeff Bezos was quoted as saying that color e-ink displays were a long way away from being ready for the public, and that a color Kindle would not be announced any time soon. He may be right in that a "color e-ink" display is not ready for primetime, but smaller companies, and now Barnes & Noble, are banking on customers preferring any kind of color screen - even if it is the same as or similar to your television or computer screens. The main benefits of color are somewhat dependent on personal preference: magazine content now becomes an exclusive of color e-readers and tablets, and for the family, children's books in color are now viable as well. To motivate parents, 12,000 new kids titles are being added to the Nook's selection. Other color e-readers have the ability to play video, so having color can be one component to adding more than just reading to an e-reader experience (a color screen without adequate processing power, for example, would be a dud). The difference in cost between e-ink readers and color readers is still usually over $100, so it has its price. Depending on the success of the new Nook, Amazon may feel compelled to bring out a competitor.

Since Barnes & Noble's announcement of the Nook Color, commentators in the press and on the web have noted that this latest product blurs the line between e-reader and tablet. At $250, the price remains in normal e-reader territory and is a full 50% cheaper than Apple's baseline iPad. Compared to Hewlett Packard's recently released Slate 500 tablet (which I admit is geared towards a completely different purpose, as similar as the products look) we're looking at $250 vs. $799. So what's different about the Nook Color and its more expensive tablet cousins?

Barnes & Nobles Announces Nook Color; will Amazon also join the fray?

- By Thomas McKinney

Yes, that is the Nook Color on the left.


The new Nook definitely does e-book reading. But it does more. Not more like either the iPad or the Slate 500, but it's worth mentioning. On the hardware side, it is essentially a 7" Android tablet. Android is Google's mobile operating system, and it's making its way onto all kinds of mobile devices these days. Many iPad competitors have announced tablets running the Android OS (operating system). But Android has varying levels of restrictions based on the purpose of the device - this reader/tablet isn't compatible with the regular Android Market for applications. Instead, Barnes & Noble has created a developer program in the hope of bringing third-party applications to its Nook Color. The program is in its infancy, so the results of it remain to be seen. It is an ambitious project for Barnes & Noble, but if it succeeds they'll be getting a big head start over Amazon. There are challenges, though: both Apple's App Store and Google's Android Market will always offer superior selection. And, if the transition from normal Android applications to Nook applications requires more than a small amount of effort, I don't see why developers would create apps for a market that is already inherently smaller than either of the existing ones in Apple or Google. The good news is that it shouldn't require much effort since the Nook Color technically runs Android.

Other than e-book reading, the Nook Color can be used to surf the web, play music, and even play video to a limited extent. Those are normally functions we see in full-blown tablets, not e-book readers. Those could easily be major selling points for the new Nook, although people might be buying it more as an inexpensive tablet than as a color e-reader. Additional capabilities will appeal to varying demographics: the Nook color can be used effectively for viewing magazine content and children's (picture) e-books. And it also includes popular applications for social networking like Facebook and Twitter. There's something for parents, and there's something for teens. No 3G (cellular wireless) was announced so standard wi-fi is the only option currently. It's still a lot of functionality packed into a one pound casing for $250.

Traditional e-ink readers have been the norm - battery life (upwards of a week on a single charge for some) and readability in direct sunlight being the main advantages over tablets and color readers. They remain the most popular dedicated e-readers. But with the second largest e-book retailer releasing a cheap(ish), yet attractive e-reader/tablet, they find themselves presently in a strange position: one not filled with competition. Barnes & Noble is the first, and only, major e-book retailer to launch a full color e-reader. I'd encourage them to work fast and try to make as much progress as possible with their developer program: they won't be alone for long.