Barnes & Noble's Nook tablet may have run its course.
When Barnes & Noble reports its Q3 2013 earnings this Thursday, losses in its Nook Media division, which includes sales of its e-books and Nook devices, will be more than the year before, Leslie Kaufman of The New York Times reports.
And now, a person familiar with Barnes & Noble's strategy tells Kaufman that the company will focus more on licensing its own content, rather than making its own devices.
“They are not completely getting out of the hardware business, but they are going to lean a lot more on the comprehensive digital catalog of content," the Times' source says.
Last quarter, Barnes & Noble's bookstores generated $996 million in sales, while it's Nook unit had only $160 million in sales.
“It is a very tough space," Sterne Agee Senior Analyst Shaw Wu told the NY Times. "It is highly competitive, and extras like the depth of apps are very important. But it requires funding and a lot of attention, and Barnes & Noble is competing against companies like Apple and Google, which literally have unlimited resources.”
Update: We just heard from Barnes & Noble spokesperson Mary Ellen Keating. Here's what she says, "To be clear, we have no plans to discontinue our award-winning line of NOOK products."
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