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Costco blew it. Their policy might be 14% markup only, but you can bet your ass that if they wanted to continue the relationship with Apple, they could have made an allowance.

Look at it from another view. Apple needed Costco far, far less than Costco needs Apple. While I am not privy to how many devices Costco sold that had the Apple logo on it...to simply banish them from their premises due to a pricing issue with Apple is shortsighted on their part. Every device that could have been potentially sold in a Costco store...is now gone, seemingly forever. Apple didn't lose any, because other retailers exist to sell their product.

Lastly, I am not familiar with Costco. Yes, I'm aware of what they are, but the nearest is 400 miles from me.

Costco needs Apple? Why in the world would you come to that conclusion? The amount of Apple products sold by Costo must be a tiny, tiny fraction of their business. They won't miss a beat by not having Apple products.
 
Costco needs Apple? Why in the world would you come to that conclusion? The amount of Apple products sold by Costo must be a tiny, tiny fraction of their business. They won't miss a beat by not having Apple products.

Same for Apple, they have plenty of retail channels and people who want an Apple product will buy it somewhere else. It seems like both companies don't really need each other, which is perhaps why they split.
 
Its a bummer that Costco won't sell iPods anymore. I never considered them my "go to" iPod retail store whenever I shopped there, but I'm sure many people did.
 
I'm another person who is a regular customer of both Costo and Apple.
And another person who is disappointed with this outcome.

Look at it from another view. Apple needed Costco far, far less than Costco needs Apple. While I am not privy to how many devices Costco sold that had the Apple logo on it...to simply banish them from their premises due to a pricing issue with Apple is shortsighted on their part. Every device that could have been potentially sold in a Costco store...is now gone, seemingly forever. Apple didn't lose any, because other retailers exist to sell their product.
1) Costco did not need Apple (just as Apple did not need Costco).
2) Apple will indeed lose sales from this. You can bet your ass that they will. Costco is not a low-end super-low-price location for this sort of thing. They tend to stock high quality goods at mid-range prices (generalizing here). Their customers are very much the sort of customers that buy Apple products, and having those Apple products in the Costco stores would result in sales that would have gone to other companies, or not taken place, otherwise. It just won't be enough sales to ruin Apple's day. Whatever their point of contention (online sales, price, or whatever it may have been) it just happened to be a bigger deal.
 
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.

Amazing that a person can show so much ignorance by deciding how much a person can afford based on where they shop. You might want to redirect that comment to the originator. :p
 
was at costco yesterday and noticed the ipods and itunes gift cards were gone.

another victory for microsoft.
 
Good for Costco. They can fill the shelves the Apple products used to occupy with much more profitable products (probably anything other then Apple products)
 
was at costco yesterday and noticed the ipods and itunes gift cards were gone.

another victory for microsoft.

Exactly, now Microsoft can cop another sale of Windows 7 that comes preinstalled on a $199 laptop. ;)
 
Amazing that a person can show so much ignorance by deciding how much a person can afford based on where they shop. You might want to redirect that comment to the originator. :p
Sorry bud, it may not be nice, but your position here is incorrect one (or you simply misunderstood). The demographic shopping at Costco is far and away more affluent than the demographic shopping at Walmart. It is like comparing a Kia to a Lexus.

Now, as you say, you cannot pass judgement on a single person based on where they shop (some wealthy folks shop at Walmart), but you can make generalizations about groups, and that's what the other fellow was doing.
 
I see this as very little loss to Costco. Hell if anything it might mean more profit to Costco because my guess is Apple stuff gave little if any profit to Costco. Apple will be hurt more by it than Costco.
 
Box Stores - never a great deal for Apple

Never found Apple products to be all of that great of a deal at Costco, BJs or Sam's. Given the great deals you can get for other products, it is a bit misleading for them to even have floor space. Best deal for Apple products are Amazon (think tax/free shipping) and Apple Store (Refurbished section), bar none.

This raises my respect for Costco actually. They have standards for what deals they offer their members. Excellent.
 
Always appreciated that Costco seems to want to treat its employees well, a pretty rare attitude in retail. Costco is a well run company with integrity. Shame to see some of the uninformed bashing here...
 
Always appreciated that Costco seems to want to treat its employees well, a pretty rare attitude in retail. Costco is a well run company with integrity. Shame to see some of the uninformed bashing here...
Agreed completely. They're a marvelous company.
 
Sorry bud, it may not be nice, but your position here is incorrect one (or you simply misunderstood). The demographic shopping at Costco is far and away more affluent than the demographic shopping at Walmart. It is like comparing a Kia to a Lexus.

Now, as you say, you cannot pass judgement on a single person based on where they shop (some wealthy folks shop at Walmart), but you can make generalizations about groups, and that's what the other fellow was doing.

Generalizing? No, he was not. He was saying that as a whole and insulting anyone that Walmart sells to. Here's his quote:


"Walmart who sells to people who can only afford generic soda"

You're defending the wrong person.
 
I'm another person who is a regular customer of both Costo and Apple.
And another person who is disappointed with this outcome.


1) Costco did not need Apple (just as Apple did not need Costco).
2) Apple will indeed lose sales from this. You can bet your ass that they will. Costco is not a low-end super-low-price location for this sort of thing. They tend to stock high quality goods at mid-range prices (generalizing here). Their customers are very much the sort of customers that buy Apple products, and having those Apple products in the Costco stores would result in sales that would have gone to other companies, or not taken place, otherwise. It just won't be enough sales to ruin Apple's day. Whatever their point of contention (online sales, price, or whatever it may have been) it just happened to be a bigger deal.

If someone wants Apple hardware, they will go to which ever store sells Apple hardware. Apple isn't going to lose any sales over this move...
 
Generalizing? No, he was not. He was saying that as a whole and insulting anyone that Walmart sells to. Here's his quote:
Sorry. If you were attacking that specific line I understand and agree. It was unwarranted and untrue. I took away from your response that you were attacking a recognition in the difference between the demographics.

If someone wants Apple hardware, they will go to which ever store sells Apple hardware. Apple isn't going to lose any sales over this move...
It might seem that way spending time in a forum like this one, but not everyone buying Apple products is buying Apple products because they want an Apple product. Some are buying a computer. Some are buying an MP3 player. And for these people having the option to buy an Apple product will make the difference. A lot of these customers aren't overly concerned with technology and may simply be buying a type of product for themselves, on a whim, or as a present.
 
Not sure how important Costco was to Apple considering it wasn't much of a discount. Although it did give them more exposure. In the long run it won't make a difference.
 
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.

WOW i didn't know that Mtn Dew was generic soda, I wonder if PepsiCo knows that.

Just because one shop at Walmarts means absolutely nothing.

but anyway back on topic.

If i was Apple i would want as many stores to carry my product as i could. the more people that get access to your product the more chances you have to make a sell. Apple is the one that needs Costco more then Costco needs Apple. Apple should have went above and beyond the call of duty to keep their product/s there. by not having Costco not selling their products isnt going to kill Apple, its just they have a slight bit less a chance to make a sell.
 
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It might seem that way spending time in a forum like this one, but not everyone buying Apple products is buying Apple products because they want an Apple product. Some are buying a computer. Some are buying an MP3 player. And for these people having the option to buy an Apple product will make the difference. A lot of these customers aren't overly concerned with technology and may simply be buying a type of product for themselves, on a whim, or as a present.

^ That.

Some people here live in a very small (isolated?) world...
 
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.

You could also buy it at an Apple store, Best Buy, or Apple.com, all three of which have better shopper demographics than CostCo (depending on the BestBuy's location). Also, Apple's direct service has been the industry's envy for a while.

Furthermore, I would never call CostCo's shoppers anything special, but to label everyone else "unwashed masses" is both offensive and stupid. Considering CostCo, mostly, is in rural areas, you could just call those masses you dislike minorities like everyone else. Finally, please stop pretending that that warehouse club is anything but a hangar of merchandise for poor white trash. CostCo is not "high end" and never was.
 
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Somehow I doubt this ends up impacting Costco much at all.

Agreed. What many people don't understand is that Costco needs apple like a frickin hole in the head. They're making bank with a whole bunch of other vendors who will work with them. I think it would be in apples better interest to work with Costco, but if they don't want to fine. Costco won't be taking any losses from this, they don't care.
 
That's to bad, and rather disappointing. I'm quite surprised they couldn't have worked out some sort of deal that both sides could find agreeable.
Personally I tend to buy most of my Apple products directly from Apple, but I did always like seeing them in Costco, and I would buy iTunes gift cards there, as well as iPods. This seems like a tripple loss to me, for Costco, Apple, and the customers. Oh well, maybe next year, or the year after that they'll get it figured out.
 
Costco.. eh. Never loved the idea of having to pay a membership just to shop. No Costcos around here... no one I know has a membership... now if this was Target or another retail chain then it would be a bigger issue.
 
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