Things are not looking so good for Amazon, as America's second largest discount chain, Target, is gearing up to stop selling Amazon Kindle devices after two years. What is most interesting is the fact Target will still be offering similar products from Apple and Barnes and Noble, which leaves us to ask the question - what is the motive behind such a move, and which company will suffer from it?
According to Target, which is based in Minneapolis, the reason for dropping Amazon Kindle devices has to do with a "conflict of interest." Target and Amazon are both rivals, the company might not see it as a good idea to offer products in its own catalog from a company it competes with, or there might be more to this than we thought.
Apple competes with Amazon in the e-Reader space with its iBookstore which was launched back in 2010. You might be wondering, what does this have to do with Target putting the Kindle devices aside. Well, Apple has big plans and Target is a partner Apple is using to get those plans up and running.
Apple is on the verge of opening mini stores in 25 Target stores in 2012, and since Apple and Amazon are rivals to the core, Apple might have seen it as not being in the company's best interest if Amazon Kindle devices are also sold in Target, where it will directly compete with its own offerings. However, Target cites this as a conflict of interest, but how so? If it is truly a conflict of interest, then why does the company still bother to carry Barnes and Noble Nook tablets? This could be because Barnes and Noble is not big a threat as Amazon, or we could be reading Target actions wrongly.
By the end of May, 2012, all Kindle products will be out of Target according to Spokeswoman Molly Snyder. "Target is phasing out Amazon- and Kindle-branded products in the spring of 2012. We will continue to offer our guests a full assortment of e-readers and supporting accessories," Snyder said.
Whatever the case is for Target's decision, Amazon could very well be the one to feel the pinch here. Last year, the Kindle Fire was the top selling device at Target on Black Friday.
(reported by Vamien McKalin, edited by Surojit Chatterjee)
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