Costco Preparing to Begin Selling iPhone and iPad as iTunes Store Gift Cards Return [Updated]

MacRumors · Jun 9, 2014

Back in late 2010, Apple and warehouse club chain Costco parted ways, ending a relationship that had seen Costco carrying iPods and iTunes Store gift cards. The two companies now appear to have patched up their differences, reaching an agreement that will see the second largest retailer in the U.S. begin carrying the iPhone and cellular iPads through its wireless kiosks.

The news comes via an email from Dan Brettler, founder and CEO of Car Toys and its Wireless Advocates subsidiary, which handles wireless sales for Costco. The email was sent to Wireless Advocates employees, notifying them of the new partnership.

Wireless Advocates Team,

I am extremely excited to share the news of a new partnership between Apple Inc. and Costco Wholesale. This partnership will bring a top selling line-up of Apple products to Costco members including the iPhone and embedded iPads. As Costco's solution for wireless devices and services, we are proud to be a part of this new partnership and incorporate Apple products into our already strong product line-up in Costco.

We already know Apple products. They are not new to our business. We currently sell Apple products in two of our three enterprise channels (Car Toys and Military). We already have a great business partnership with them and this new opportunity strengthens that relationship. They are valuable to our long-term success and growth in our space. This initiative will accelerate same store sales through performance gains and new products and services, as well as enhance our strategic partnership with our suppliers. This is critical to the overall success of "Our 5 Strategic Business Initiatives".

In his email, Brettler acknowledges that there is still "much backend work and physical kiosk work" to be done before Costco stores can begin selling iPhones and iPads, and he does not provide a timeline for the start of sales. He does, however, promise to keep employees updated as the project moves forward.

Beyond iPhone and iPad, several Twitter users have reported yesterday and today that Costco has once again begun selling iTunes Store gift cards. This is likely separate from the hardware partnership with Wireless Advocates but part of the broader agreement between Apple and Costco, with the gift card portion moving forward on a faster timeline due to the ease of rollout.

Update 9:09 PM: We've heard that additional Apple products such as iPods and Wi-Fi iPad Airs have begun appearing in Costco's internal inventory systems.

Article Link: Costco Preparing to Begin Selling iPhone and iPad as iTunes Store Gift Cards Return [Updated]

1Zach1 · Jun 9, 2014

Is there any advantage to buying an Apple product at Costco? Do I get 500 rolls of toilet paper for free or something?

Agent OrangeZ · Jun 9, 2014

1Zach1 said:
Is there any advantage to buying an Apple product at Costco? Do I get 500 rolls of toilet paper for free or something?

No, but you can pick up and all beef hotdog and soda for $1.50 while you're there.

iolinux333 · Jun 9, 2014

1Zach1 said:
Is there any advantage to buying an Apple product at Costco? Do I get 500 rolls of toilet paper for free or something?

I love TP SO MUCH!!! I would totally buy all Appleware there if it came with free TP!!!

henryaaron · Jun 9, 2014

I worship Costco but I can't imagine them having a large presence in cellphone retail

1Zach1 · Jun 9, 2014

1080p said:
No, but you can pick up and all beef hotdog and soda for $1.50 while you're there.

I prefer their churros, but they are a good deal.

thevofl · Jun 9, 2014

Yesterday, I saw an iTunes gift card display at the front of the Novato, CA store with an employee promoting it. "We have iTunes gift cards." $94.99 for $100 gift cards. Not the best promo out there.

But I remember thinking, hell must have frozen over between Costco and Apple.

Apparently it has.

AngerDanger · Jun 9, 2014

Daaaaaaaawwwww, I wanted Costco to make their own budget electronics as alternatives… those always work so well…

Komrad808 · Jun 9, 2014

Nice! While I eat the free food samples, I get to look at Apple products. This will indeed help me to kill more time while the wife shops at Costco.

beachbum357 · Jun 9, 2014

I believe you get your activation fee back if you buy and activate at Costco

One advantage

Mr. G4 · Jun 9, 2014

Also free car charger and other accessories.

tigres · Jun 9, 2014

I can't even remember why they broke up in the first place.

I do recall Costco kicking Coke out a few years back, when not agreeing on paying a higher price.

sjc83 · Jun 9, 2014

1Zach1 said:
Is there any advantage to buying an Apple product at Costco? Do I get 500 rolls of toilet paper for free or something?

YES, how about the FREE extra year warranty on ALL electronics?

Rayd5365 · Jun 9, 2014

tigres said:
I can't even remember why they broke up in the first place.

If I recall correctly, the breakup was reported to be about Costco selling Apple products with a discount, or a least a bigger discount than Apple wanted in major retail. Even then, the discount would be like $20 on a $200 iPod.

thevofl · Jun 9, 2014

Rayd5365 said:
If I recall correctly, the breakup was reported to be about Costco selling Apple products with a discount, or a least a bigger discount than Apple wanted in major retail. Even then, the discount would be like $20 on a $200 iPod.

And, if I recall, they were upset that Sam's Club got to sell the iPhone.

pdaholic · Jun 9, 2014

sjc83 said:
YES, how about the FREE extra year warranty on ALL electronics?

Does their "return with no questions asked" policy apply to phones?

I know the return period is shorter for electronic devices. I had a coffee maker crap out 4 months after I bought it from Costco, they took it back, no questions. I would buy anything I needed from them.

Deelron · Jun 9, 2014

pdaholic said:
Does their "return with no questions asked" policy apply to phones?

I know the return period is shorter for electronic devices. I had a coffee maker crap out 4 months after I bought it from Costco, they took it back, no questions. I would buy anything I needed from them.

Aye I did the the same with a blender 8 months later that I could no longer remove the blade from after 3 uses (and yes, I cleaned it each time!)

The return policy site states:
"We guarantee your satisfaction on every product we sell with a full refund. The following must be returned within 90 days of purchase for a refund: televisions, projectors, computers, cameras, camcorders, touch screen tablets, MP3 players and cellular phones."

Also on top of any deals you also get a smooth 1% back if you're an executive member, so that pays for child's seat worth of hot dogs on the way out.

nutmac · Jun 9, 2014

1Zach1 said:
Is there any advantage to buying an Apple product at Costco? Do I get 500 rolls of toilet paper for free or something?

I believe you also get 90-day return on the phone, but the service agreement cannot be nullified without paying early termination fee.

And generally speaking, the phone is few dollars cheaper than carrier's price, enough to pay for $1.50 hotdogs.

go ipad · Jun 9, 2014

1Zach1 said:
Is there any advantage to buying an Apple product at Costco? Do I get 500 rolls of toilet paper for free or something?

Better return policy than Apple Store?

pdaholic · Jun 9, 2014

Deelron said:
Aye I did the the same with a blender 8 months later that I could no longer remove the blade from after 3 uses (and yes, I cleaned it each time!)

The return policy site states:
"We guarantee your satisfaction on every product we sell with a full refund. The following must be returned within 90 days of purchase for a refund: televisions, projectors, computers, cameras, camcorders, touch screen tablets, MP3 players and cellular phones."

Also on top of any deals you also get a smooth 1% back if you're an executive member, so that pays for child's seat worth of hot dogs on the way out.

Thanks Deelron. I will definitely be checking out the iPhone 6 at Costco. 3 months is definitely better than Apple's 2 week (I think) return policy!

Deelron · Jun 9, 2014

pdaholic said:
Thanks Deelron. I will definitely be checking out the iPhone 6 at Costco. 3 months is definitely better than Apple's 2 week (I think) return policy!

Np. Sadly if I recall they used to use the same policy for everything but the returns on electronics got abused pretty royally.

aaronvan · Jun 9, 2014

This is great news! All hail Costco.

T5BRICK · Jun 9, 2014

Deelron said:
Also on top of any deals you also get a smooth 1% back if you're an executive member, so that pays for child's seat worth of hot dogs on the way out.

It's a 2% reward now.

http://www.costco.com/executive-rewards.html

BruiserB · Jun 9, 2014

Does Costco only sell under contract phones at subsidized prices, or will they sell device only devices? Can you buy a Samsung phone from them at a no contract price now?

Also what are "embedded" iPads? Haven't heard that term before. Is that iPads that are on post-paid service? If so it seems like this is a bid to get the devices in their mobile kiosks within the stores rather than just available in the general store for cash and carry. They used to sell the iPod this way, but that has pretty much gone away as a category.

herr_neumann · Jun 9, 2014

Deelron said:
Np. Sadly if I recall they used to use the same policy for everything but the returns on electronics got abused pretty royally.

Yeah it did. My roommate in college returned his mom's 4 year old laptop for a full refund and then bought the newest model they had. Also had another friend return a TV 3 years later and do the same thing.

Costco Preparing to Begin Selling iPhone and iPad as iTunes Store Gift Cards Return [Updated]

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