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Wal-Mart To Cease Selling Amazon's Kindle Devices


Retail giant Wal-Mart Stores Inc. (WMT), will stop selling Amazon.com's (AMZN) Kindle products, according to news reports. Wal-Mart now becomes the second major retailer after Target Corp. (TGT) to cease selling Amazon's devices.

Wal-Mart decision heightens the growing tension between brick and mortar retailers and Amazon, the world's largest online retailer, as retailers find it hard to achieve the same profit margin as online retailers. Major U.S retailers are trying to compete and find other avenues to make up for the sales lost to online retailers, as more people find it comfortable to purchase online after checking products at retail stores.

Consumers prefer to personally touch and check on an electronic product before buying it. Therefore, like Target, Wal-Mart too may has decided not to let the big online-only retailers to use their stores as showrooms for its customers to easily check on the products. Nevertheless, market experts have observed that Amazon sells majority of its Kindle products online, so the decisions made by the retailer are less likely to affect Amazon presently.

The latest news comes just a fortnight after Amazon unveiled new versions of its tablet computer and e-reader. The retail giant is striving hard to capture a significant chunk of the U.S. tablet market, which is dominated by Apple Inc.'s (AAPL) iPad.

On September 6, Amazon launched a 7-inch Kindle Fire HD priced at $199, a bigger 8.9-inch Kindle Fire HD costing $299, and a Kindle Fire HD 4G LTE with a price tag of $499. The company upgraded Kindle Fire at $159. Amazon also revealed e-reader Kindle Paperwhite at $119.

AMZN is currently trading down $1.91 or 0.73% at $259.77, on a volume of 1.8 million shares on the Nadsdaq.

WMT is currently trading at $74.69, up $0.32 or 0.43%, on a volume of 2.2 million shares on the NYSE.

by RTTNews Staff Writer

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