May 9, 2013

Reflecting on my Samsung post (May 3rd, When You Are Leading, Lead More), Barnes & Noble’s Nook HD is facing just the opposite challenge. Nook revenue is down 26% for the quarter ended in late January. So, they are adding Google’s Android app store along with other Google services such as Gmail and Google Maps to Nook HD readers. They are desperate to be more competitive with rival tablets.

This move isn’t entirely risk free. The Android app store includes a Kindle Tablet app, which consumers could use to bypass the Nook store altogether. But when you are behind, taking risks is just what you have to do.

The most interesting news today, reported by Wall St. Journal’s William Launder, is that Microsoft is considering buying the digital assets of Nook Media (e-books, Nook e-readers and tablets) for around $1 billion. This could give a lifeline to Nook and give Microsoft a stronger tablet product line. As I said, when you are behind, don’t give up, keep looking for strategic partnerships.

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