Kindle Fire to go on clearance at Target - Rumors are false.

[Caine]

got this from a thread on CAG.  it's rumored that Target is looking to dump all of their Amazon product starting tomorrow at 30% off (eventually ramping up to 75% off).  great time to get a great little tablet.

handy link to find any in your area. given that this is a fire sale (no pun intended) and some people have reported saying they heard about this on local news, I'd expect it to go up quickly, maybe similiar to the hp tablet clearance last year.  don't wait if you have any intention of getting one.  

I am fighting the urge to not hit up the local store on my way home tomorrow.  

[MonkeyFinger]

Hmmm... and yet it seems that most people at the end of the thread are saying that the Target stores they've checked at are saying that they've heard nothing about a sale. Rather, they'll just pack up any unsold ones and return them to Amazon.

[rshetts2]

Yep youre going to need some awesome luck to get this.  The word is that the Kindle stock is being sent back.  Theres a huge thread ( at least 96 pages ) on Slick deals on this and so far no confirmed buys.

 What is happening is Target is discontinuing the Amazon e-reader line.  A rumor got started when this was announced that they would be clearing out their current stock but they are in fact simply returning the stock to Amazon.  Kindles are price fixed by Amazon and they dont allow fire sales.  It is possible that some in store returns will be sold on clearance and that is likely where this whole thing started.

[Caine]

bummer.  I was hoping for a repeat of last year's Best Buy announcement RE HP touchpad. 

[Isgrimnur]

Why would a store that's angry with a product manufacturer put their stuff on clearance, especially in this market that's all about installed bases?

[EngineNo9]

Why would a store that's angry with a product manufacturer put their stuff on clearance, especially in this market that's all about installed bases?

Because if they have changed their nation-wide planogram and need to put new product in that shelf space then they need to get rid of the stuff they have already on those shelves and sitting around in their warehouses.  Normally it isn't an option to send things back to the manufacturer like that, so they're best off just putting it on 30% off clearance and at least getting back the money they invested in that stock in the first place.

Also, what does Target care about installed base other than maybe selling a few accessories?  If they're not moving those products fast enough or making enough profit on them it doesn't make sense to carry it.

[Calavera]

Why would a store that's angry with a product manufacturer put their stuff on clearance, especially in this market that's all about installed bases?

Target is angry with Amazon? All the rumors that I've read say it has more to do with Target launching Apple mini-stores than anything else.

[hitbyambulance]

Kindles are price fixed by Amazon and they dont allow fire sales.

is price-fixing illegal in the US or not?

[Calavera]

Kindles are price fixed by Amazon and they dont allow fire sales.

is price-fixing illegal in the US or not?

Complicated. It's not technically price-fixing because they are permitted to sell at something other than "MSRP", but the manufacturer won't provide them with a supply if they don't. They're still free to purchase from someone other than the manufacturer. The fact it's not feasible, but not impossible, to purchase from someone else isn't really relevant. Target could fire sale them if they wanted to, but Amazon is very likely giving them a sizable or full refund if they're returned. Not angering Amazon and getting a refund is probably a good business decision...

[IamChuckles]

The Target I was at yesterday did have Kindle Touch with a $20 gift card.  So I picked one up.

[Isgrimnur]

Price fixing normally refers to collusion between companies rather than one supplier setting a recommended sale price.