Apple iTunes Gift Cards

Discussion in 'MacRumors News Discussion (archive)' started by MacRumors, Feb 12, 2004.

  1. macrumors bot


    Apr 12, 2001
    iPodLounge posts a photo of new iTunes Gift Cards which will be available at Target stores.

    The cards are expected to go on sale as of February 15th. Based on the photo provided, it appears the $15 card will allow customers to purchased 15 songs from the iTunes Music Store.

    Napster had previously launched similar Pre-Paid song cards -- also available at Target.
  2. macrumors 603


    Sep 3, 2003
    North Carolina
    Very cool. Another way for non-cc holders to get iTunes. I think my 12-year-old son would be very interested in these.
  3. macrumors regular


    Oct 8, 2003
    my wife works for the company so I wonder if the team member discount applies?
  4. macrumors newbie

    Dec 7, 2002
    Kinda interesting, and it's not a HUGE deal, but with the gift card you're paying a penny more per song PLUS whatever your local tax rate is. Nice to have the option, though.
  5. macrumors member

    Nov 19, 2003
    Re: Apple iTunes Gift Cards

    Wha? Does this mean that tax is waived when you use these gift cards?
  6. macrumors member


    Jan 29, 2004

    notice the timing... supposed distribution come the 15th... and is pushing the ipod as a "love-day" gift.
    ahh those folks at apple have it all planned so well. ;-)

    Attached Files:

  7. macrumors regular

    Aug 25, 2003
    Austin, TX
    Re: Re: Apple iTunes Gift Cards

    I don't pay tax on Pepsi's iTunes winning codes, so I would guess this is the same way. Plus, you're probably gonna get tax charged on it at the register.
  8. macrumors 6502a


    Sep 16, 2003
    My local grocer, Kroger, sells the napster cards. I assume they will also sell these itunes cards. A good idea for gifts, and parents who don't trust their kids with the cc #.
  9. macrumors member

    Jan 31, 2004
    Paris, France
    another homerun

    As long as Apple keeps up the intense marketing push it's got going right now (I've noticed the iPod+iTunes tv ads are back on, along with the print ads and the Pepsi promotion), it can keep its position as the dominant music store. Just keep getting the name out there; eventually this won't be necessary, but with the flood of new stores they have to make sure absolutely everyone knows about iTunes.
  10. macrumors 6502a

    Mar 20, 2003
    And Apple makes less money with them as well. Target isn't selling them for free, so they get some money, add in the distribution, printing and insertion into iTMS. Apple is using this as another avenue to get people to spend money at the iTMS. Convenience items are usually more expensive anyway.
  11. macrumors 68020

    Aug 9, 2000
    all i can say is that this is a very good thing for apple. branching out thier marketing strategy, especially with a retailer like target (now known for being hip and stylish, as well as budget-oriented) improves the image of iTMS and apple in general.

    things are looking bright for apple! :)
  12. macrumors 603


    Sep 3, 2003
    North Carolina
    Re: Re: Apple iTunes Gift Cards

    Actually, I suspect you pay tax when you buy them. Just a theory anyway. Also for some reason I haven't been charged tax on iTunes lately.
  13. macrumors 68040


    Feb 17, 2003
    with Hamburglar.
    This is a great thing for Apple. It adds depth and breadth to accessability to Apple products.
  14. macrumors 6502a


    Nov 11, 2003
    In the Bowels of the Cosmos
    Re: Re: Re: Apple iTunes Gift Cards

    ah because the tax bill is hidden and is accumulating. Come next april you will be surprised to notice a $10 tax fee per song plus interest since purchase date.
  15. macrumors 68000


    Jan 29, 2003
    Mineola TX
    No tax

    Nope... no tax. It's just like any other gift card you buy... you buy a $20 gift card and you pay $20.

    Now, when a person USES the card, the tax comes out of the card or out of their pocket if they exceed $20.

    But, I guarantee you that the purchaser will not pay the tax FIRST at the register for the cards.


    11 songs x 99¢ = $10.89 + 90¢ TX = $11.79.

    Apple charges you TAX when you ACTUALLY BUY something.
  16. macrumors 68020

    Jan 7, 2003
    Washington, DC
    Re: No tax

    But if you get 15 songs for $15, then you do avoid the tax. It's not like a calling card, where after 14 songs you won't have enough for the 15th.

    As for Apple losing money on this, remember that they pay a credit card fee now, and they avoid that. So there are savings as well.
  17. macrumors newbie

    Dec 27, 2002
    Loss leader

    The card is a loss leader.

    Loss leader: A retail item advertised at an invitingly low price in order to attract customers for the purchase of other, more profitable merchandise.

    And that more profitable merchandise is?

    The iPod of course.
  18. macrumors 68030


    Jul 17, 2002
    Corvallis, OR
    Re: Re: Apple iTunes Gift Cards

    Only if you pay tax when you buy the card. If you were to have to pay tax both when you bought the card and when you downloaded the song, then that would be double taxation, and that's illegal.

    However, here's an interesting thought, what if Apple has decided to pay the tax for us? Some people are saying that they're not paying tax anymore... I'll have to try it...
  19. macrumors 65816


    Jul 24, 2002
    Champaign, IL
    Re: Re: Re: Apple iTunes Gift Cards

    They were charging me tax when I first stared using the iTMS...but they've stopped...not sure why but I'm not complaining. :)
  20. Guest

    Dec 19, 2003

    When I saw the Napster ones at some gas station, I thought it was a brilliant idea and that Apple BETTER get going doing the same thing. Mindshare!

    They NEED to squeeze and squeeze the life out of WMA. The MS crowd will NOT give up easily. But make it so that no one can profit from selling (only) songs and very few companies will be willing to lose money just for MS.
  21. Guest

    Dec 19, 2003
    I hope the iTMS gift cards are racked up sitting right next to iPod displays at the Target stores.

    Apple could really do something cool like an "iTMS within a store" kiosk-ish thing. Listen to sample songs. Get a free iTunes CD (save the download). Selling iPod accessories right there too. Etc.
  22. macrumors 6502

    Jan 7, 2003
    The 909
    This is good for Apple's mindshare, because anything in a store is an impulse buy. You can buy an iTunes gift card at Target with a lot less thought than it takes to actually download iTunes, register, type your credit card number, and so on.

    I'm not sure about the tax, though. I've paid my local 9 cent sales tax on every iTune purchased so far, as recently as February 8. Maybe some states just don't charge tax on downloads?
  23. macrumors 6502a


    Dec 17, 2002
    Re: Re: Re: Re: Apple iTunes Gift Cards

    Same here. I thought it was because Apple had to have a physical presence in my county. Every other month I have to re-validate my card and the Music Store always makes a big deal about what county I'm in.
  24. macrumors 6502a

    Sep 16, 2003
    Akron, OH
    Anyone else think this would be cool to throw into frozen pizza boxes and stuff? Not a $15, but mabey a $5 one. It's a good way to get iTunes recognition to a level of check-out lane aquantancy.
  25. macrumors 6502a


    Nov 3, 2003
    CD: TX-14
    Mmmm, I'd go more along the lines of Pizza Hut, Dominoes, Papa Johns. Fresh, piping hot pizza with iTunes gift certifacate attatched to the box.

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