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macstyle

macrumors newbie
Sep 3, 2003
3
0
at my target store we have had these in the backroom for about two weeks. we also resently put up our mini-ipod display with the coming soon boxes.
 

Lanbrown

macrumors 6502a
Mar 20, 2003
893
0
Re: Re: No tax

Originally posted by Le Big Mac

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.

For a high volume of transactions, the service charge is negligible for CC purchases.
 

ClimbingTheLog

macrumors 6502a
May 21, 2003
633
0
Not gonna last

Apple can't keep selling these things forever. Think about it - Target isn't going to sell something for no markup. So Apple isn't getting $15 for them from Target. I bet Apple is giving up all of its revenue on each song to Target.

This is a great strategy for getting iTunes into the collective conciousness, like the Pepsi promotion. But at some point Apple has to stop losing money on each song sold - it will eat into the iPod profits before long.

Then again, once iTunes is embedded in the culture maybe Apple can renegotiate their terms with the RIAA and make some profit on these cards.
 

wdlove

macrumors P6
Oct 20, 2002
16,568
0
I did see the iTunes at my local Apple Store also. That is the only place that I've seen them. They would make a nice Valentine's gift for that special lady.
 

ccuilla

Cancelled
Dec 19, 2003
236
0
Re: Not gonna last

Originally posted by ClimbingTheLog
Apple can't keep selling these things forever. Think about it - Target isn't going to sell something for no markup. So Apple isn't getting $15 for them from Target. I bet Apple is giving up all of its revenue on each song to Target.

Don't be so sure about this. Like Apple has demonstrated with their strategy, a company doesn't have to make money on EVERYthing it sells. Target knows this too. They may get some other benefit from it. Draw traffic into the store? One impulse purchase leads to 2-3 more? Sell iPods as well? Who knows. But don't ASSUME that Target is making anything on this.
 

chameeeleon

macrumors 6502
Jan 11, 2004
389
0
Apple's added the cards to the iTMS frontpage now, on the source list below "Allowance". By the looks of it, there's a 15 digit code that you have to scratch on the back of the card (which would be covered by the cardboard, to prevent people from getting the code without paying).
 

laserbeahm

macrumors member
Feb 4, 2004
93
0
Central Valley, CA
This is probably a profitable venture for both Apple and Target. Sure, most of the gift card revenues probably go to Target, but Target sells the iPod. Having ITMS gift cards may make the iPod look more viable, and in turn drive more iPod sales. On the other hand, having ITMS gift cards right next to iPods is a great add-on opportunity. Apple gets big profits off the iPod, and possibly the gift card, and Target gets money for both.
 

IscariotJ

macrumors 6502a
Jan 13, 2004
637
66
UK
Restrictions On Use?

Does anyone know if there are restrictions on use of these cards, or the gift certificates? A friend of mine will be on holiday in the US shortly, if he picks me some up, will I be able to use them in the UK?
 

ccuilla

Cancelled
Dec 19, 2003
236
0
Originally posted by ccuilla
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.

Looks like Apple is doing this. Almost. The kiosk is missing two things (IMHO):

1. A stack of iTunes for Windows CDs to take home and install.

2. A computer with speakers, with iTunes running, giving people a first hand try to sample songs, etc.
 
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