(Ping! Zine Web Tech Magazine) – Following significant quarterly losses, book retail giant Barnes & Noble late last month announced that it would stop making its line of Nook Color tablets.
The company has instead opted to let them be manufactured via what it calls a “partnership model,” outsourcing them to other manufacturers.
NOOK revenues decreased by 34% in the latest earnings report. The new strategy comes as part of the company’s plans to reduce costs.
“We are taking big steps to reduce the losses in the NOOK segment, as we move to a partner-centric model in tablets and reduce overhead costs. We plan to continue to innovate in the single purpose black-and-white eReader category, and the underpinning of our strategy remains the same today as it has since we first entered the digital market, which is to offer customers any digital book, magazine or newspaper, on any device,” commented Barnes and Noble CEO Chief Executive Officer Willaim Lynch.
Lynch was later ousted amid the fallout of weak company earnings which saw overall revenues for the company decrease by a staggering 7.4% – earning the company $1.3 billion for the year.
Barnes and Noble, meanwhile, will continue to build NOOK products including the Simple Touch and Glowlight “in house.”