B&N has been trying its best to keep up with Amazon in the e-reader and tablet businesses. Amazon has been quite aggressive with its pricing strategy, which helped it capture the #2 position in the tablet market in the last quarter. B&N is planning to push the Kindle Fire harder with a 8 GB NOOK Tablet. The device has less storage than the original NOOK Tablet. At the same time, it will equal or beat the pricing of the Kindle Fire. It will be released on February 22nd.
Barnes & Noble is most likely not too happy with the quick rise of the Kindle Fire to the top. The company has tried limited time promotions to push its NOOK tablet harder. Adding a reduced storage capacity NOOK to the mix does make things more interesting. Amazon is already ahead of the game though. Instead of worrying about the NOOK, it is setting its sights on the iPad.
The China Times of Taiwan suggests that Amazon could bring a 10 inch tablet to the market by the end of Q2. Amazon plans to pick and approve parts to keep the costs low. Can the Kindle Fire 2 beat the iPad 3? That is hard to see. But we will know more in a few months.