NEW YORK - While Barnes & Noble Inc. Chief Executive William Lynch describes Apple Inc.'s iPad as a great product, even a "juggernaut," he also has a few criticisms. Mainly that it's expensive and weighs too much.
Once Lynch could be certain that Barnes & Noble could build a tablet with similar dimensions to the bestselling iPad that was also cheaper and lighter, he went ahead with the project after killing it twice. The result is the 9-inch Nook HD+ that went on sale Wednesday for $269. The newest iPad starts at $499 and weighs 27 percent more.
"We think there is a big market there" below the pricing of the iPad, Lynch said in an interview. "We're starting this product at $269 for a large-format tablet, which is a wow, disruptive price point."
The largest U.S. bookstore chain's new devices, which also include a 7-inch Nook HD starting at $199, will also take on Amazon.com Inc.'s updated set of Kindle Fires that were announced Sept. 6. The online retailer, which also pitched its new devices as a cheaper competitor to the iPad, starts its 7- inch tablet at $199 and an 8.9-inch at $299.
Barnes & Noble shares rose 6 percent Wednesday to close at $12.99. The shares have dropped 10 percent this year.
Both Amazon and Barnes & Noble have increased access to content beyond digital books and touted specifications such as screen resolution and processing speed as selling points to expand their customer base beyond readers.
Nook Video, announced Tuesday, will allow users to buy movies and television shows from providers such as HBO and Walt Disney Studios. The video, like other Nook content, can then be stored via cloud computing and accessed on multiple devices.
"Side by side with the new Kindle Fires, they are competitive," said Sarah Rotman Epps, an analyst for Forrester Research Inc. in Cambridge, Mass. Getting consumers to choose the Nook over an iPad will be much more difficult because Apple customers care less about price, she said.
