News
Apple pact with Wal-Mart ‘broader than some realize’
Morgan Stanley analyst Rebecca Runkle said today that Apple’s pact with Wal-Mart may be broader than some realize.
“While we don’t believe Apple iPod availability at Wal-Mart is completely new news, we do think the partnership is broader than people think, in transition and set to expand in the near-term,” Runkle said in a research note to clients.
Runkle said Apple and the retail giant have expanded their initial test rollout in the last few months. Confirming the report, iLounge readers in Florida, Indiana, Texas and elsewhere have noted in recent weeks that they’ve seen various iPod models at their local Wal-Mart stores. Select Wal-Mart locations are carrying the 20GB iPod, the iPod mini, and the iPod shuffle, along with HP-branded versions.
Runkle estimates that sales of iPods at Wal-Mart locations could boost sales by 100,000 units and add $20 million in revenue each quarter. “We view the growing Wal-Mart relationship as a positive—a way to expand the brand to the mainstream and additive to the bottom-line,” she said.
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1
Why are they doing this? What’s gonna happen when the Wal-Mart customer buys an iPod and then wants to sign up for Wal-Mart’s music service?
Posted by Anon on June 16, 2005 at 4:58 AM (PDT)
2
Well I for one was glad to see our Wal-mart finally get them in stock. I was having to drive a hour and a half away to get mine and now I can drive 15 mins and pick one up. Well Wal-mart is now carrying the itunes download cards as well as the players, and if you go to the website it clearly states that the downloads only work for certain players. It’s the consumers fault if they don’t check which players those are before downloading songs from the Wal-mart store then.
Posted by Razor70 on June 16, 2005 at 6:59 AM (PDT)
3
my worry is that wal-mart will try to strong arm apple into lowering prices only for them. it’s what wal-mart’s done with nearly every other supplier that sells to them. will jobs give in or will they soon pull the ipod from wal-mart?
Posted by J on June 19, 2005 at 7:03 PM (PDT)