While some of the Nook Tablet's specifications are superior to those of the Kindle Fire, the Nook's price fails to break below the magic $200 figure that will attract more consumers, analysts said Monday. As a result, the Kindle Fire, with its better-recognized brand name and access to widely known Amazon content, should sell better among holiday shoppers in the initial weeks when both go on sale.
Both devices have 7-in. touch screens and will be available next week. The Kindle Fire arrives Nov. 15 and the Nook Tablet by the end of next week at Barnes & Noble stores and other retailers, the company said.
The Nook Tablet and Kindle Fire are "very different products, but the critical break-point is $199, and $249 [for the Nook Tablet] does not have that same cachet with buyers," said Rob Enderle, an analyst at Enderle Group. "Below $200 is a much bigger market than $249, and Barnes & Noble is missing the break-point that's going to be the critical factor in sales, not specs."
Enderle's reasoning is based on consumer technology sales history and how shoppers buy during the holiday season. While a person buying for himself might weigh more carefully the superior memory and storage of the Nook Tablet, that same buyer would want to hold down the cost below $200 when buying one as a gift, he said.
Jack Gold, an analyst at J. Gold Associates, said the $50 difference could weigh against Barnes & Noble because "most buyers aren't crazy techies and won't go through every spec like I would ... for most users, the extra memory won't be that important."
IDC analyst Tom Mainelli said it is hard to predict how important the $50 price difference will be, but added the customers Barnes & Noble is going after are "likely not that specification-driven."
Barnes & Noble also claimed the Nook has a better screen than the Kindle Fire, "but that's one of those things that you'll need to compare side-by-side." Both devices have a 1024 x 600 touch screen, but the Nook Tablet benefits from a VividView display, Barnes & Noble officials said.