Microsoft (MSFT) Dealt Another Blow as Barnes & Noble (BKS) Goes with Google

May 3, 2013 7:28 AM EDT
Microsoft (Nasdaq: MSFT) just can't get a firm grip on the tablet market, it seems.

According to an earlier release, Barnes & Noble (NYSE: BKS) entered a deal to bring certain features of Google (Nasdaq: GOOG) to its NOOK HD tablet line. Those apps include Google's Chrome browser, Gmail, YouTube, Google Search and Google Maps, as well as access to the Google Play app library.

Microsoft has been struggling to get its Surface tablet out there. It is currently planning the release of its next-generation tablet, which it hopes will be available for debut by the end of June. Sales of Surface tablets have been about 1.5 million units, or just about half of what Microsoft execs were expecting. The company might take a cautious approach this time around.

Selection of Google over Microsoft's Bing search engine for Barnes & Noble's NOOK might not be a surprise; NOOK's platform is built on the open Android architecture, making integration of existing Google content potentially an easier venture. Plus, with millions of users utilizing Google each day, it puts a stronger name in mobile devices behind the NOOK, which could lead to stronger sales.

That's the plan, anyway.

Barnes & Noble and Microsoft are both lower in early trading Friday.


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