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Amazon's Next Mistake?

By Rick Aristotle Munarriz | More Articles
September 1, 2010 | Comments (1)

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Kindle readers in an office-supplies store? That was easy!

Staples (Nasdaq: SPLS  ) will start selling Amazon.com's (Nasdaq: AMZN  ) popular e-book readers this year, making the office superstore chain the second bricks-and-mortar retailer to stock the Kindle. Cheap chic purveyor Target (NYSE: TGT  ) began carrying the portable readers three months ago.

Staples is a good choice for Amazon. Now at attractive $139 and $189 price points, the gadgets should sell briskly among corporate supplies. Staples will even stock the larger DX model. It only helps Amazon that Apple's (Nasdaq: AAPL  ) iPad is nowhere to be found at a Staples or Target near you.

I was skeptical about Amazon's initial foray into bricks-and-mortar distribution, but this summer's price war on e-book readers demands aggressive tactics.

Borders (NYSE: BGP  ) became the latest player to work some discounting magic. The Borders-branded Kobo reader is receiving a $20 haircut to sell at $129 through the struggling bookseller. It's also pricing the Aluratek Libre below the $100 mark as of this morning.

Amazon won't necessarily have to respond to the latest round of price cuts. Borders' moves are probably a bigger affront to Barnes & Noble's (NYSE: BKS  ) Nook and Sony's (NYSE: SNE  ) line of e-book readers. They're all trying to position themselves as the viable Kindle alternative -- and that skirmish will most likely come down to price.

Just three years ago, Amazon hit the market with a $399 Kindle. They grow up -- and get marked down -- so fast these days.

Do you own a Kindle or another e-book reader? Share your thoughts in the comment box below.

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Apple, Amazon.com, and Staples are Motley Fool Stock Advisor recommendations. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz has been shopping online for about as long as Amazon.com has been in business. He owns a Kindle and an iPad. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. 

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool has a disclosure policy.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 02, 2010, at 12:06 PM, lizgirl wrote:

    I've had my e-reader for two weeks now. I really don't think that it matters what brand. My reader does does use e-ink technology (very easy on the eyes) and has a small number of bells and whistles.

    But I'm now wondering "why" I have it. I read a lot but I wouldn't call myself a voracious reader; I don't consume a lot of new hardback books that cost a lot or have waiting lists at the library; I'm willing to buy paperbacks that often cost less that e-versions; and many of the books I do buy -- cookbooks, political theory, local authors -- are iffy in e-versions. It's going to be a long time before this investment pays off.

    Right now I'm becoming a walking discouragement for e-books and e-readers. Maybe I should have held out for an iPad or waited until my local library launches e-reader lending this fall.

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