The nation’s biggest retailer announced today that it was going to stop the sales of Amazon Kindle tablets. Analysts were already expecting Wal-Mart to drop the tablet due to the sheer competition between the two companies.
The move to stop selling Kindle tablets shows how serious Wal-Mart takes the consumer goods competition and Amazon has always been one of its biggest competitors.
Target had already taken the steps to stop the sale of Amazon’s Kindle at its stores, but other retailers such as Best Buy, Office Depot and Staples are going to continue selling the tablet.
Wal-Mart refused to comment on the decision of stopping the sales of Amazon’s Kindle, but it has been predicted that street retailers have been really worried about the customers who walk in stores to simply check the device and buy it off at Amazon’s online store, where the gadget has always been sold cheaper than at other stores.
Analysts also believe that one of the biggest reasons for Amazon’s Kindle tablet threat is the online browser installed on it. Consumers who buy the tablet are exposed to advertisements by Amazon that encourages them to buy from the retailer’s online store. Sale of its tablets by other retailers means that they themselves are sending the customers away.
At the same time analysts also reveal that Kindle tablets have only marginally produced profits for other retailers.
The technology sector opened with positive results. The computer hardware sector saw +0.11% change during the start, Software also had a positive start with +0.24% change, IT and Consulting saw +0.40% change, Communications saw +0.22% change and Semiconductors also had a change of +0.46%.
Apple (AAPL) remained in the headlines with stock price 703.89 and +5.19% change after the market opened today.
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