Amazon's Biggest Threat Isn't Apple, It's Retailers

Four months after Target

announced that it will

the Kindle line of products from Amazon

, Wal-Mart

has announced that it will do the same.

According to a

exclusive, the company made the announcement in a memo sent to store managers Wednesday evening. "We have recently made the business decision to not carry Amazon tablets and eReaders beyond our existing inventory and purchase commitments," Wal-Mart wrote in the memo. "This includes all Amazon Kindle models current and recently announced." This announcement comes only weeks after Amazon unveiled an

of new Kindle Fire tablets, including three with high-definition displays. All of the tablets, which range from the $159 seven-inch model to a $499 edition that features an 8.9-inch HD display and supports 4G LTE, were designed to undercut the pricing structure of Apple's

third-generation iPad. While the lower price has proven to be a

in getting consumers to make a purchase, Wal-Mart is not interested in continuing its relationship with Amazon. Reuters confirmed this decision after speaking to a Wall-Mart spokeswoman, who said that the company would continue to sell a "broad assortment" of tablets, e-readers, and accessories from other manufacturers. That assortment was expected to include the iPad, which continues to be a hot item for the retailer, as well as Google's

Nexus 7, which was released in July. A quick search on

reveals that the company may also continue to sell tablets from Asus, Acer, Samsung, Barnes & Noble

, and several lesser-known brands, such as Coby and Ematic. Wal-Mart's decision to stop selling Kindle products is a sign that the company is worried about Amazon's growing online business. Many think of Wal-Mart, Target, Best Buy

, and other retailers as

. Thus, some retailers would rather sacrifice whatever profits they may gain by selling Kindles to diminish the Amazon brand and prevent its proliferation. That strategy could backfire. By forcing consumers to look elsewhere for their Kindle fix, they may inevitably shop elsewhere, too. Aside from Amazon.com, which does not yet have

, Best Buy is the primary seller of Kindle products.