Costco and Apple Officially Part Company

December 10th, 2010 · 7 Comments

Well, it is official, Costco is going to stop selling Apple products in 2011.  During Costco’s fiscal first quarter earnings call CFO Richard Galanti confirmed that Costco is phasing out Apple products from their warehouses.  As you may recall, I posted about this rumor a while ago.  At that time, the rumor was that Costco was going to discontinue selling Apple products because they were not going to be allowed to sell the iPad, even though retailers like Target, Walmart and Sam’s Club, were already selling it.

Of course, it seems like perhaps there is the possibility that Costco was sick of Apple stacking the deck against them.  Aside from Apple allowing other retailers to sell the iPad, there were other restrictions that Costco had to put up with to sell Apple products.  Costco was not allowed to sell Apple products on the Costco.com website, like other retailers could, for starters.  It seems like Apple had a lot of constraints on Costco that did not extend to other retailers.  Also, Costco was unable to offer the deep discounts that they are known for and like to offer their customers.   But of course, the split is being deemed as ‘mutual’, so it’s impossible to know what really led to the decision.  And naturally, Apple has no comment.

So, really, what is to be gained by the relationship for Costco?  While I know a lot of people that have picked up iPods or iTunes gift cards while at Costco, I have never heard anyone say that the only reason they shop at Costco was to purchase Apple products.

And by the way, just in case there’s a doubt about me playing favorites, I’m writing this post on my MacBook Pro.  Not to mention, we have several iPhones and iPods too, and I kinda want an iPad as well.  I’m a big fan of Apple products. However, I also think that their agreement with Costco sounds unappealing and like a bad deal for Costco; I’m surprised they ever agreed to it in the first place.

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7 Responses so far ↓

  1. 1 Marla // 2011.10.21 at 12:50 pm

    I didn’t realize how corporate apple was until I read a bunch of stuff after Steve died. He pretended to be sort of a liberal to sell to them but wasn’t at all….and I am also writing this on my mac and I have ipod, ipad, etc….

  2. 2 Justin // 2010.12.16 at 10:08 pm

    Apple operates like a monopoly. Much worse than Microsoft ever was. They dictate prices to retailers, it’s insane.

  3. 3 jamkit // 2010.12.14 at 8:26 pm

    did not take long – they are now selling the touch on costco.com

  4. 4 Mike // 2010.12.14 at 1:15 am

    This is disappointing. I would really like to buy the best products (Apple) at the best retailer (Costco).

    I will still buy Apple products, they are the best, but it is disappointing you can’t get them at Costco.

  5. 5 Aud // 2010.12.13 at 4:26 pm

    Apple is a one-dimentional company that uses heavy-handed tactics with both their retailers and their end-users. In the technology industry, they are the opponent of “open standards”, a cooperative practice which makes technology better and more accessible for all users. If Costco is no longer selling Apple products, I say “good riddance”.

  6. 6 Ken // 2010.12.12 at 10:44 pm

    Went to my local Costco today to get some iTunes gift cards and was told that all Apple products have been removed. For some reason, a few iPod Nanos were still available for now to purchase locally but did not need those.

    My only connection to Apple products from my Costco were the cheap iTunes gift cards and was hoping to really stock up on those for stocking stuffers. Too bad Apple decided to play a game of greed and forced Costco’s hand to end their partnership…:(

  7. 7 Dave // 2010.12.10 at 7:44 pm

    I think it would have been very good for apple to have sold Ipad @ costco. But you know apple has everything going for them right now. Wait thing always change.

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