"While we increased production based on the high consumer interest, we've sold out of our initial nook allotment available for delivery before the holidays," the company said.

A Certificate for the Holidays

Running out of hot products isn't new in the technology world. Beyond Amazon's Kindle, Apple has also had issues keeping iPhones in stock at launch. Sony is also facing shortages of its Daily Edition e-book reader.

Barnes & Noble customers who order the nook won't get the device until January. The next batch of nooks will ship the week of Jan. 4, according to the company. Consumers who want to purchase a nook as a holiday gift will receive a certificate that highlights the January availability.

Sony's Daily Edition is available on a first-come, first-served basis and Sony isn't making guarantees about holiday delivery of its latest e-book reader. As a result, Amazon may be the big e-reader winner this year. Amazon has a strong supply of various versions of the Kindle.

"Part of the problem with the delays is that Barnes & Noble is not a device company. So they are working with suppliers and getting into businesses that they are somewhat unfamiliar with," said Avi Greengart, an analyst at Current Analysis. "I also think they are dealing with a category that is emerging, and therefore it is incredibly hard to predict the demand. But new e-book readers are debuting at CES, so if they wait too long there will be more competition."

Getting to Know the Nook

Barnes & Noble announced the nook on Oct. 20 to compete in an increasingly crowded e-reader market. The e-book reader runs on the Android mobile operating system . It's the first in the industry to offer a color touchscreen for navigation, with access to a digital store that offers more than one million e-books, newspapers and magazines.

At no extra cost, nook users can tap into AT&T 's 3G wireless mobile broadband network or use Wi-Fi for book browsing. Barnes & Noble is also letting friends share e-books with Lend Me technology available on a selection of e-books.

About the size and weight of a paperback book, nook is the centerpiece of Barnes & Noble's strategy to deliver any book, any time, anywhere. A minimalist design aims to put the focus on content rather than the technology. The device uses the E Ink Vizplex display, which is designed to be easy on the eyes with text resolution as good as a printed book.

Barnes & Noble is launching what's called Reading Now, a virtual bookmark technology that lets you go back to the last book you've read and the page where you left off -- even on another device. For example, if consumers leave the nook at home, Barnes & Noble's free e-reader software installed on an iPhone, select BlackBerry and Motorola smartphones, and laptops lets you find your place.

The nook can hold up to 1,500 e-books and other printed content. And a 16GB microSD card holds up to 17,500 e-books. Consumers can also transfer PDF-format documents and photos from a computer to the nook. Barnes & Noble has expanded its selection of content.