Barnes & Noble, in an effort to meet the growing market demands as well as box out some competition, has lowered the prices of all three of its tablets this week.
The newest Nook Tablet, which has 16GB of memory, now costs $199, down $50 from its original price. The prices of the 8GB Nook and Nook Color have also been reduced.
Experts are not surprised by the bookstore’s move. Schools and colleges are preparing for another year and demand for hand-held computers and other media devices grows rapidly as students add them to their supply lists.
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Forrester Research’s Sarah Rotman Epps explained:
“Barnes & Noble is competing with the Google Inc. Nexus, the Amazon.com Inc. Kindle Fire, and in the future there could be a smaller iPad from Apple Inc. They have to stay competitive with their pricing as well as clear out old inventory to make way for new products.”
Epps added that the company is currently working on a ‘product cycle,’ which includes offers of new tablets for the holiday gift season as well as e-readers for events like graduation or Father’s Day.
“You have to give them credit because they’ve become a consumer-electronics company, where just a few years ago they were just a book company. Barnes & Noble is on a rapid product cycle, and you need to sacrifice pricing on old products and constantly refresh. They’re competing with the Goliaths.”