Barnes & Noble Inc. began selling a Nook-branded tablet made by Samsung Electronics Co., aiming to use the South Korean company’s technology prowess to challenge Amazon.com Inc.’s Kindle in the electronic-reader market.
The new Samsung Galaxy Tab Nook is a 7-inch (18-centimeter) device that combines the features of a regular tablet with Nook software for e-books, the companies said in a statement. Barnes & Noble, the biggest bookstore chain, is offering the product at more than 660 stores as well as online.
Barnes & Noble teamed up with Samsung in June after a money-losing effort to sell its own e-reader hardware. The deal lets the bookstore company offer an alternative to the Kindle while reducing its costs. For Samsung, the Nook branding and Barnes & Noble retail placement gives it a fresh advantage against Apple Inc. and Amazon in the tablet market.
As part of the agreement with Samsung, Barnes & Noble will buy at least 1 million devices from the electronics giant within the first 12 months. It sells for $179 after a $20 rebate.
Barnes & Noble announced plans in June to split up its Nook business from the bookstore chain, saying it would help management focus on the unique challenges of each division. While the retail chain remains profitable, same-store sales are declining.
Though Barnes & Noble enjoyed initial success in the tablet business after entering the market in 2010, analysts have long doubted it could maintain the investments necessary to compete with Amazon and Apple.
The concerns came to a head during the 2012 holiday shopping season when the chain released two tablets, including a 9-inch model that then-Chief Executive Officer William Lynch said could challenge the iPad. The devices didn’t sell well, leading to writedowns on excess inventory and eventually the replacement of Lynch by current CEO Michael Huseby.
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