Not long ago, we reported that Coscto would soon be selling iPads, well that ship has apparently sailed and there will be no iPads at Costco. Not only will there be no iPads, there will be no iPods, iPhones or iTunes gift cards. According to Costco’s CFO, Richard Galanti, Costco and Apple are parting ways. The chain is phasing out all the leftover Apple merchandise as we speak and will soon be Apple-less.
The beginning of the end between the two companies seemed to reach it’s breaking point when Apple announced the iPad would be available at Sam’s Club, Walmart and Target, yet left Costco on the outside looking in. I’m sure this didn’t sit very well with Costco brass, and I can’t help but wonder if this was Apple’s way of kicking Costco to the curb, or was it the final straw for Costco to file the divorce paperwork.
The marriage seemed odd from the beginning anyway, as Costco is based on a lower pricing strategy and, as well all know, Apple let’s distributors discount their devices by a very slim margin, usually $5-$10 at most. Apple has also never let Costco sell it’s products online as it does with other retailers. In fact, it was only this week that Best Buy was allowed to offer the iPad to it’s online customer base.
This breakup will undoubtedly bring smiles to the executives of Walmart, Best Buy and Target, as it’s always a benefit when one of your competitors gets uninvited from the party. How this will affect Apple is still an unknown, but honestly, I don’t see the stock price taking a hit in the wake of this news.
Have you ever bought an Apple product at a warehouse store? Does it take away from the experience? Do you think Costco will partner with some Android device instead? Give me your predictions below.