Apple and Costco Officially Parting Ways

[MacRumors]

In mid-October, it was reported that warehouse club chain Costco would cease carrying iPods after it lost out in an expansion of iPad availability that saw its rival Sam's Club and other retailers such as Target and Wal-Mart gain distribution rights for the popular tablet device. In subsequent weeks, observers noted Apple's products beginning to disappear from Costco's stores.

The Seattle Times reports that the parting of ways between Apple and Costco has been officially confirmed, with the two companies coming to a "mutual agreement" to end their long-standing relationship.

The chain is phasing out Apple products, per a mutual agreement between the companies, Galanti told The Seattle Times. Costco had sold iPods and pre-loaded iTunes cards for years, although never at huge discounts; and Apple never allowed Costco to sell its products online like other retailers, he said. "In the past couple months, we agreed to wind down."

Apple spokeswoman Amy Bessette said the company has no comment.

Apple's firm hold over pricing for its products and the deep discount pricing of warehouse clubs such as Costco have been somewhat at odds over the years, with the opposing sides reaching a middle ground of slight discounts on Apple products appearing at the club chains.

Article Link: Apple and Costco Officially Parting Ways

 

[Popeye206]

No big loss... Love Costco, but no need to have Apple there. Too bad though, Costco will loose out.

 

[Kestrel452]

What a baby. Figures.

 

[jaw04005]

Hurm. I have noticed a lot more Apple products at Wal-Mart's Sam's Club lately. I wonder if they're related?

 

[RawBert]

Apple's stuff have fixed prices. Not a good fit for Costco.

 

[alent1234]

i'll have to stop by costco this weekend to see if i can get an iTunes gift card for cheap

 

[nippyjun]

No big loss... Love Costco, but no need to have Apple there. Too bad though, Costco will loose out.

Both will lose out.

 

[Dr McKay]

Despite some of the comments, its never a good thing when a company stops selling your products.

 

[LagunaSol]

As a devoted customer of both Costco and Apple, all I can say is...lame.

 

[fixmymac]

Not sure about US prices but i can tell you that a £100+ saving on an entry-level MacBook Pro is not a 'slight discount'.

AppleStore MacBook Pro = £999 (With standard 1 year warranty)

Costco price = £892.98 (2 year warranty from Costco)

AppleCare is £199 for two additional years. You could argue that the free second year of warranty from Costco is worth £100.

Stretching it a bit, you could argue that Costco could save you £206.02.



AppleStore iMac 21.5" = £999 (With standard 1 year warranty)

Costco price = £916.48 (2 year warranty from Costco)

AppleCare is £139 for two additional years. You could argue that the free second year of warranty from Costco is worth £70.

Stretching it a bit, you could argue that Costco could save you £152.52.

 

[applekid]

As a devoted customer of both Costco and Apple, all I can say is...lame.

Truth.

I bought my last few iPods through Costco. And I liked getting the iTunes cards for cheap, even if it wasn't a significant discount. Oh well.

 

[chewbaccacabra]

Costco seems like a natural fit for Apple. Can't believe they couldn't work a deal. It would be cool to see computers in there with the student discount for everyone.

 

[ejrizo]

Huge fan of both Apple and Costco... too bad but to be honest with you i never purchased apple stuff at Costco

 

[Full of Win]

Why anyone would buy an Apple product, barring an emergency/time issue, at a store that charges tax is beyond me.

 

[r.j.s]

Both will lose out.

I don't really see either losing too much here.

I'm sure Apple has made up for the lost sales with the expansion of their products lines in other stores.

 

[gentleman00]

No big loss... Love Costco, but no need to have Apple there. Too bad though, Costco will loose out.

They both lose out

 

[paul4339]

if it was a dispute over the warranty, I'm glad Costco stuck to it's guns ... one reason, why I like Costco is their (generally) consistent warrant/return policy across all products... Each time you make an exception it waters down their negotiation power.


P.

 

[calvin2006]

I got my first iPod Touch at Costco. Sad to see Apple go from there.

 

[flynz4]

Why anyone would buy an Apple product, barring an emergency/time issue, at a store that charges tax is beyond me.

Not every state (US market) charges tax.

Costco has really differentiated itself from most of the other retailers by selling very high quality products... rather than junk. I am dissapointed in Costco and Apple splitting.

/Jim

I liked getting the iTunes cards for cheap, even if it wasn't a significant discount. Oh well.

Their holdiay specials usually was a 20% discount... which I appreciated.

/Jim

 

[vincenz]

It's too bad! I'll miss seeing the discounts

 

[mcdermd]

I've never seen a Mac in a Costco - only iPods and iTunes cards. I don't ever recall the iPods being more than $10 off "normal" retail pricing. I don't see any huge loss from a consumer standpoint.

 

[mdatwood]

Why anyone would buy an Apple product, barring an emergency/time issue, at a store that charges tax is beyond me.

That would also preclude Apple stores and Apple online and leaves Amazon and the few trustable mac specific online sites.

 

[Black Belt]

So Apple abandons the retailer with a MUCH wealthier demographic to Walmart who sells to people who can only afford generic soda. Wow. So idiotic I almost forgot to breathe.

Although, considering the waves of unwashed masses now congregating and not buying in Apple Stores, they do seem a bit like Walmart.

BTW, a note to the stupid press reporting this - Costco is not always about price breaks. Their service and warranty is the best in the industry. If I have a problem, or simply don't like the product like the 1st iPod touch, there are NO questions asked, they take it back with a smile. That is why I ALWAYS bought my Apple stuff there instead of getting jacked at the Apple Store or Best Buy. I would've bought my iPad at Costco but I will NEVER, EVER buy one at Walmart. Are you kidding me? Some Walmarts you wouldn't even make it to your car.

 

[Mattie Num Nums]

So Apple abandons the retailer with a MUCH wealthier demographic to Walmart who sells to people who can only afford generic soda. Wow. So idiotic I almost forgot to breathe.

Although, considering the waves of unwashed masses now congregating and not buying in Apple Stores, they do seem a bit like Walmart.

BTW, a note to the stupid press reporting this - Costco is not always about price breaks. Their service and warranty is the best in the industry. If I have a problem, or simply don't like the product like the 1st iPod touch, there are NO questions asked, they take it back with a smile. That is why I ALWAYS bought my Apple stuff there instead of getting jacked at the Apple Store or Best Buy. I would've bought my iPad at Costco but I will NEVER, EVER buy one at Walmart. Are you kidding me? Some Walmarts you wouldn't even make it to your car.

Nice job generalizing an entire population.

 

[Black Belt]

Nice job generalizing an entire population.

It's called Market Demographics. Look it up.