There are a lot of places that sell iPad WiFi/3G 16GB and other mobile gadgets like tablet PCs and mobile phones. You can go and visit the nearest shop in your neighborhood or you can just go online to buy one. The great thing about this is that the consumer is given the freedom to choose the way he shops even for grocery items. Those who are intimidated when setting foot in tech shops, or those who live far from the big cities that have swanky stores can get their gadgets from large retail stores that sell anything. Yes, Target, Kmart, and Wal-Mart sell tablet PCs, too!
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With this, Amazon is left with a greatly reduced number of channels where customers can purchase their product. If this move happens again with the other retailers that still sell Kindle, then it leaves Amazon with a very limited market. It might just end up with the Kindle being available only through online purchase through their website unless Amazon puts up a store in every major city in the country.
Come to think of it, this has worked for Apple. Through the years, Steve Jobs’ company has operated its own stores and kept authorized retailers at a minimum. This has given the company an aura of exclusivity that sits well with its loyal customers, and at the same time also allowed them to maximize profits. If Amazon wises up, they could follow this brave business model and operate stores themselves, and maybe even expand their product line to accessories and whatnot, building a better and stronger brand for themselves.
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