Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Target to sell Amazon's Kindle in select stores with broader rollout to follow

By | April 21, 2010, 1:25pm PDT

Target, a long-time Amazon partner, is going to give the Kindle a distribution hand in a small number of stores with a larger rollout later in the year.

The retailer said Wednesday that it will carry Amazon’s Kindle beginning April 25 in select stores. Specifically, Target will carry the Kindle at its flagship Minneapolis store where the retailer is based. In addition, Target will put the Kindle in 102 south Florida store. After those pilots, Target will bring the Kindle to more stores.

News of the Target distribution leaked out earlier in the month. Meanwhile, Barnes & Noble paired up with Best Buy to distribute the nook. Leading e-reader manufacturers are bolstering distribution as Apple’s iPad hits the market.

The battle should be interesting. As Jason Perlow notes, the iPad just isn’t for heavy readers—especially outdoors.

The big question is how big the market is for hard-core readers. With additional distribution at Best Buy and Target we’ll find out. Sony already distributes its Reader at retail outlets.

Target and Amazon have a solid history as partners. Amazon has hosted Target.com for years, but the parties are amicably breaking up.

All content and alerts for e-books and e-readers.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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Amazon's making money on the hardware
Jer40923 Updated - 23rd Apr 2010
I don't think it's this simple. Amazon's original model had them making money off of the Kindle hardware and losing money on books (they were selling best sellers below cost).

Ultimately they were trying to get enough market penetration to be able to exert pressure on the book publishers to improve margins. However competition from other eReaders, the impending iPad launch, and a stubborn publishing industry had foiled this plan.

At this point they've obviously shifted the strategy. They're looking for market saturation of their software, rather than the hardware. Then they'd ultimately have the leverage they need with the publishers.

The challenge is whether they can outpace Apple on this front. Steve Jobs has already secured some strong alliances with publishers that'll make it an uphill battle.

Amazon's advantage will be cross-platform compatibility. They have more to gain than anyone if other tablets are able to gain market share or if consumers start reading more books on their cell phones.
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Could work out very well
gtaylor2 22nd Apr 2010
I know a lot of people that don't want a kindle until they try it. Once they see that e-ink is as good as their traditional books, they are willing to consider it as a potential purchase. So being an online only purchase doesn't allow people to try this unfamiliar technology.

I love my Kindle and I hope others will find the same joy.
0 Votes
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I agree, I think it's a smart move
John Zern 22nd Apr 2010
only because they can get their hands on it like the can with an iPad.

For many people, being able to try out the unit before buying is important, and as it is right now, you can only do that with the iPad.
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Wonder if apple will put out an anti-glas tack on or case.

Surprised the ******** applers didnt eat you alive on this one.
0 Votes
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I have a Kindle and an iPod Touch...
Techdelirios 22nd Apr 2010
While the Kindle is king in the sunlight, the iPod Touch isn't that bad using the Kindle app. It turns off the back light and the background becomes kind of reflective. It is quite readable even in direct sunlight, but no where close to the Kindle which is easiest to read in very bright light, just like a book...only lighter and easier to hold.

I haven't seen an iPad in the sunlight, but I bet it isn't as bad as this photos shows..
It has to be remembered that Amazon is in the business of
selling books. The Kindle was a way of selling books.
That's where Amazon makes its money. The iPad is going
to have a version of Kindle software that runs on it so
it will still sell those books whether it sells Kindles
or not.

As long as the Kindle has a big enough market to make it
break even, Amazon comes out ahead. I think the whole
iPad vs. Kindle is a non-issue.
0 Votes
+ -
Amazon's making money on the hardware
Jer40923 Updated - 23rd Apr 2010
I don't think it's this simple. Amazon's original model had them making money off of the Kindle hardware and losing money on books (they were selling best sellers below cost).

Ultimately they were trying to get enough market penetration to be able to exert pressure on the book publishers to improve margins. However competition from other eReaders, the impending iPad launch, and a stubborn publishing industry had foiled this plan.

At this point they've obviously shifted the strategy. They're looking for market saturation of their software, rather than the hardware. Then they'd ultimately have the leverage they need with the publishers.

The challenge is whether they can outpace Apple on this front. Steve Jobs has already secured some strong alliances with publishers that'll make it an uphill battle.

Amazon's advantage will be cross-platform compatibility. They have more to gain than anyone if other tablets are able to gain market share or if consumers start reading more books on their cell phones.

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