Target (TGT) Says 'So Long!' to Amazon's (AMZN) Kindle; Cites Conflicting Interest

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Is Target (NYSE: TGT) really aiming to un-shelve Amazon's (Nasdaq: AMZN) Kindle line due to a recently announced partnership with Apple (Nasdaq: AAPL) -- or for some other reason?

According to TheVerge Wednesday, Target circulated a memo to execs and managers saying the Kindle will be taken off shelves due to a "conflict of interest."

Stores have until May 13th to comply. Target's online store shows no signs of the Kindle Fire.

Some possible reasons behind the move:

• As mentioned, Target could be clearing-up room for Apple mini-stores inside of Target stores nationwide. However, if competition is really on Target's mind, it might want to consider getting rid of all Samsung-branded electronics and Nintendo Wii hardware and software. Generally, carrying a diverse set of brands is better for Target and other retailers, as it will draw more shoppers into stores.
  
  
• Amazon might be requiring stiffer terms to carry the Kindle line. Following strong Black Friday sales and a newer version expected to debut in a few months, Amazon may require retailers to shell out more for the devices in order to make the venture more profitable.
  
  
• Sales have been so bad that taking up valuable shelf space no longer makes sense. Though Black Friday sales were good, we're now a half-year off of that date and consumers may have lost interest in grabbing a Kindle tablet for now. The "conflict of interest" would be Target's aim to make profits, while the Kindle might be a money losing proposition at this point.
  
  
• Target might want to make a Google (Nasdaq: GOOG) Android-based tablet of its own (probably not, but it should be mentioned).

Shares of Target are about 1.3 percent lower while Amazon is off just 0.3 percent.

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