Costco now drops iTunes cards, all iPods after iPad snub | iLounge News


Costco now drops iTunes cards, all iPods after iPad snub

Following a report earlier this month that membership club Costco would be ceasing sales of iPods after being denied the opportunity to sell the iPad, iLounge has now been informed that the warehouse retailer will also be ending sales of all discounted iTunes cards this coming Saturday, October 30th. It is unclear at this time whether this applies to all Costco locations worldwide, but the source suggests that it is expected to affect all North American locations. The report also confirms that current stock of iPods will continue to be sold until inventories are exhausted, however barring a future change in policy iPods will no longer be available from Costco after the current stock has been sold.

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I don’t know if Apple was just caught off guard by the level of acceptance and success for the iPad, shocked into imbecility by the severity of the iPhone 4 leaks, or what, but their retail rollout this year has been an amazing mess.

My local Target has a bazillion iPads in stock with no retail display of any sort, no updated iPod display, and they still only have 3G touches on the shelf next to 6G nanos and no shuffles of any variety.

Meanwhile the local Wal-Mart is just now taking down the retail display for the 2009 models, leaving no display up, but at least they finally have all the new models in stock.

Previous years we’d see the once standard advice to stores that Apple was predicting shortages come August and September and supplies would dry up as Apple stopped shipping current models. This was followed by the rapid rollout of the new models. This year everything just kind of trickled out with there never being a shortage of anything current with old stock still outnumbering new stock for many devices and locations.

And then for no discernable reason whatsoever they opt to refuse to sell iPads at one of America’s largest box store chains with the predictable results: Costco plays hardball. It’s not like with Apple’s much higher than usual wholesale price points that stores make all that much off of selling their products anyhow, so no idea what Apple is thinking with this sort of random permissions to sell a mass produced Chinese good.

Posted by Code Monkey in Toronto on October 29, 2010 at 11:35 AM (CDT)


Can’t believe that Costco would do this, doing so would be one those stupid corporate mistakes that came back an bit them in the ass…

There aren’t a whole lot of reasons to include holiday shopping on your list of things to do at Costco, they’d be removing a major one.

Posted by benjitek in Toronto on October 29, 2010 at 12:33 PM (CDT)


This sort of strongarm negotiating tactic seems like it might rub Steve Jobs and Apple the wrong way.

It could end up backfiring. Who knows.

Seems kind of weird and dumb from all sides.

Posted by ort in Toronto on October 29, 2010 at 2:19 PM (CDT)


This is a stupid decision for BOTH! The consumer gains from the availability of iDevices at Costco. It is of advantage to Apple and Costco as well.

Apple, as a long time Apple client and a long time Costco client, all I can say is: FIX THIS!

Posted by DaveMTL in Toronto on October 29, 2010 at 4:21 PM (CDT)


I’ve been a member of Costco forever and this doesn’t surprise me one bit. You never know what Costco carries on any given day. If you see something you like, buy it then because it might not be carried the next time you go. As for the prices of Apple gear at Costco, it never was that great. Costco also carries specially made versions of all kinds of products that are only available at big-box stores. When they do this, you can’t find information about them from the manufacturer (e.g., sewing machines, kitchen products, etc.). Costco buys in bulk, is very nice to their employees, but you can’t rely on them to carry anything for very long.

Posted by robert in Toronto on October 29, 2010 at 6:34 PM (CDT)


My face just pissed me off I think I will cut off my nose to spite it!!!!

Posted by kirasaw in Toronto on October 30, 2010 at 1:50 AM (CDT)


Apple may have refused to have Costco sell iPads because Costco demonstrated an inability to handle the other devices very well. One of the big reasons that Apple has its own stores is because big retail chains simply did not handle Apple products with respect.

By the same token, Apple has to work with the retailers to get displays on the floor, keep stores stocked, and watch how inventory rolls over. This is more logistics than rocket science.

Posted by Mike in Toronto on October 30, 2010 at 3:48 AM (CDT)


Hahahaha   So lets see if I got it… Let’s stop selling popular and profitable items because we didn’t get a specific product from a vendor.

Obviously Costco has no respect for it’s shareholders nor it’s customers.
The feelings of a few people feeling “snubbed”,  in a position to make this kind of unprofitable decision has more priority. 

When it gets this dirty isn’t it pornographic ?

Posted by VinnyG in Toronto on October 30, 2010 at 7:57 AM (CDT)


Costco has just a loyal following as Apple, who are diehard.  Costco is in no danger by not selling Apple products.  Honestly, I don’t get the reactions around here about how awful Costco is since they don’t sell Apple products.  Seems like much ado about nothing.

Posted by Jeff in Toronto on October 30, 2010 at 11:40 AM (CDT)


Costco discontinued product in the past because of buyers nose getting pulled out of joint. They discontinued 3 products I shopped there for specifically and private labeled 2 others that are not up to the brand name standards.

I’ve discontinued my company Costco cards and personal ones too. If you look around today, Costco is not what it was years ago and I don’t see any improvement. It certainly doesn’t deserve paying for membership to shop there anymore.

Posted by Bob Forsberg in Toronto on October 30, 2010 at 9:49 PM (CDT)


Costco drives hard deals with its suppliers.  Costco is not afraid to pull the plug when they don’t get what they want.  That’s how they provide their customers with great deals that are unobtainable elsewhere.  The latest issue with Apple is just another example.  I bet within a few months, Costco will be selling Apple products again after the two reach a deal.

Posted by Rajesh in Toronto on November 6, 2010 at 10:22 PM (CDT)


It just sounds like Apple being Apple to me. It is how they handle all problems; just cut it off, piss off to negotiating for the benefit of all. I would not be surprised to hear Mr. Job’s claim that every other mobile device maker has the same problems with Costco.

On a side note; I am currently working on a new car, the iCar. It will have an 800 HP 12 cylinder, but will max. out at 55. It will have free satellite radio, but you will have to pay to activate it. You will have to send it back to replace the battery; and lastly, if you touch it wrong all communications within the vehicle will shut off. Now for add-on’s, we will let you know when and what you can do with your vehicle, because as a customer you are just not smart enough to make these decisions.

What do you think?

Posted by John Staples in Toronto on November 10, 2010 at 1:21 AM (CST)


I’m not sure why, but Apple has treated Costco like a second class account for many years. I don’t blame Costco for getting tired of it. Apple was trying to punish Costco again by offering the IPad to its competitors while expecting Costco to continue to sell 100’s millions of $$$ in I Tunes and IPods.  The vendor/retailer relationship should work for both parties….

Posted by Sam in Toronto on November 11, 2010 at 5:54 PM (CST)

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