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Nook, in new wi-fi form, is released by Barnes and Noble

Nook, in its latest version, will have wi-fi capability and cost less than $150.

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Nook electronic book reader is coming out in a new wi-fi version. In this file photo, a customer tries out a Nook electronic book reader at Barnes and Nobles in New York.

AP Photo/Seth Wenig

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Barnes & Noble Inc introduced a new Wi-Fi version of its "Nook" electronic book reader on Monday and lowered the price on its 3G-compatible Nook amid intensifying competition in the fast growing electronic-books industry.

Barnes & Noble, the No. 1 U.S. specialty bookseller by sales, priced the Wi-Fi version of Nook at $149 and reduced the price on its 3G-compatible Nook to $199.

The move comes as Apple Inc's iPad, launched in the spring, has drawn many shoppers to its e-bookstore and as Borders Group Inc gets ready to launch its own e-bookstore.

The Nook also competes with Inc's Kindle. Barnes & Noble launched the Nook in October.

Barnes & Noble is set to report its fourth-quarter earnings next Monday.

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