Costco enters 'mutual agreement' to stop selling Apple products

Discount wholesaler Costco will no longer sell any of Apple's products, as the two companies have reportedly come to a "mutual agreement" to cease their partnership.

According to The Seattle Times, Costco will phase out Apple products from its inventory. Richard Galanti, chief financial officer for Costco, reportedly said that Apple never allowed the retailer to sell its products online, while other stores have had that privilege.

"In the past couple months, we agreed to wind down," he said.

In October, it was rumored that Costco was looking to stop selling Apple's iPod because Apple has not allowed it to sell the iPad. Costco was left out earlier this year when rival Sam's Club announced it would carry both the iPad and the iPhone.

While Apple apparently passed over Costco, a number of other retail partners are offering the iPad this holiday, as Apple looks to maximize the retail presence of its touchscreen tablet. Among those selling the iPad are Target, Best Buy, Walmart, and carriers AT&T and Verizon.

In addition to iPods, Costco also sold iTunes gift cards, which could be used to buy content and applications from the iTunes Store. However, the iPods and gift cards were never sold with large discounts from the wholesaler.

47 Comments

jason98 768 comments · 14 Years

About 14 years ago

I think this is a huge mistake by Apple and a very short-sited decision. Costco is one of the few retails positively perceived by shoppers.

joeventura31 6 comments · 15 Years

The gift cards were discounted which was really nice. It was a 3 pack of 20$ cards. Once for some reason they had them for $47 which is unbeatable. Regularly they still sell them cheaper than the value of the cards by at least a few dollars. I wonder if this is the reason why it's ending, that Costco was selling giftcards for less than their iTunes value.

xian zhu xuande 801 comments · 18 Years

Quite disappointed with this one.

beltsbear 315 comments · 15 Years

Quote:

Originally Posted by jason98

I think this is a huge mistake by Apple and a very short-sited decision. Costco is one of the few retails positively perceived by shoppers.

I would not call it a huge mistake, as Apple can sell everything they make.

I do have to admit it seems like a bad decision though, I spend more at Costco then anywhere else, and i find that Costco treats its customers and employees far better then Wallmart/Samsclub.

I guess Apple does not have much ground to stand on when they say the record companies treat them worse then lets say Amazon or other online music resellers.