Walmart Dumps Amazon Kindle Line
Walmart will discontinue selling Amazon's Kindle products, "severing its relationship with a major competitor and placing a bet that consumers are more interested in Apple's iPad and other gadgets," Reuters reported. In May, Target made a similar move.
Walmart called the decision consistent with its overall merchandising strategy, while Reuters noted that the retailer "has been trying to catch up to Amazon in online sales."
TechCrunch suggested that "the moves made by Walmart and Target seem more like the sign of a deepening schism between strictly online retailers and those with brick-and-mortar businesses to maintain. Amazon has historically been pretty happy to drive wedges into that gap, too.... Amazon was more than happy to reinforce the notion of physical retailers as showrooms while it laughed all the way to the bank."
BGC Financial tech analyst Colin Gillis told the New York Times that by selling Kindles, Wal-Mart was "encouraging its customers to step into that ecosystem.... Every time you pick up your Kindle, they're trying to get you to buy patio furniture. If I were Walmart, I certainly would not be encouraging my customers to go down the path of owning a Kindle and buying things from Amazon."