Sony (NYSE:SNE) said it might not have its e-reader, the Daily Edition Reader, ready to ship before Christmas. It has given customers a range of dates for availability of its product that could be as early as December 18 or as late as January 8.
Now, Barnes & Noble (NYSE:BKS) has come up short on the inventory of units for its device–the Nook. The book retailer said, “Preorders have exceeded our expectations.”
Barnes & Noble and Sony came into the e-reader market to challenge the extremely successful Amazon (NASDAQ:AMZN) Kindle which has established a large enough market to prove the devices are popular. Several research firms say that they expect e-reader sales to hit three million this holiday season. Amazon is the only competitor in the field which has effectively managed its inventory. That leaves Barnes & Noble and Sony with little more than the embarrassment of botched launches.
The news points to yet another reason that Amazon is so widely admired on Wall St. It invented the e-reader and established a huge library of e-books. The new business is so successful that it has been challenged by Wal-Mart (NYSE:WMT) which is offering several e-books for under $10. Amazon remains the leader in the field, both in the size and traffic to its library and the market share of the Kindle.
Challenging Amazon at what it does best is a hard task as it is. Making a major mistake is the process will probably prove to be a setback that Barnes & Noble and Sony cannot overcome.
Douglas A. McIntyre
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