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.
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Apple iTunes Gift Cards
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Re: Re: No tax
For a high volume of transactions, the service charge is negligible for CC purchases.
For a high volume of transactions, the service charge is negligible for CC purchases.
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.
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.
Re: Not gonna last
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.
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.
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).
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.
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?
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?
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.
Also, Hechs still has their iPod display up near me, so that'll be a good place to sell gift cards too, and also have iTunes display.