Wal-Mart pulls Kindles from store, follows Target’s lead
Amazon founder Jeff Bezos holds the new Amazon tablet called the Kindle Fire on September 28, 2011 in New York City. The Fire, which will be priced at $199, is an expanded version of the company’s Kindle e-reader that has 8GB of storage and WiFi. The Fire gives users access to streaming video, as well as e-books, apps and music, and has a Web browser. In addition to the Fire, Bezos introduced four new Kindles including a Kindle touch model.
Wal-Mart is pulling Amazon Kindle tablets and e-readers from its shelves, in favor of Apple products like the iPad.
Reuters reported the world's largest retailer is following Target’s lead and sees Amazon.com "as a competitor," but Kindles weren't making enough of a profit margin to keep in stores.
“When Wal-Mart sells a Kindle, they’re effectively putting in their customers’ laps a cash register for competitors,” Scott Tilghman, an analyst at Caris & Co, told Bloomberg Businessweek.
Target stopped selling Kindles this past spring, while Best Buy and RadioShack are still stocking them, Reuters reported.
According to Bloomberg Businessweek, the markets didn't like the news. Amazon shares tell 0.6 percent to $260.12 in mid-afternoon trading.
Amazon recently unveiled a new line of more sophisticated Kindle e-readers and tablets, hoping to capture more consumers in this increasingly competitive market.
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