Apple and Costco go their separate ways

Summary: Warehouse club Costco has confirmed that is to discontinue selling Apple products.

Warehouse club Costco has confirmed that is to discontinue selling Apple products.

The news was conformed by Costco's chief financial officer Richard Galanti during today's financial conference call.

CNET has the more information:

The Times says the split is mutual, and notes that unlike some of the deals made with other large-scale Apple resellers, Costco was never allowed to sell Apple's products through its own online store. The post also highlights that Costco's sales of Apple products did not venture further than offering slightly discounted iPods and packs of iTunes gift cards.

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As Apple increases its retail reach, both on and off line, it needs third-party outlets less and less. I'm sure that no one at Apple will lose any sleep over this.

Topics: Apple, Banking

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46 comments
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  • There sure is a pattern developing with Apple

    "Does not play well with others"
    NonZealot
    • Or others don't play well with Apple.....

      @NonZealot
      Pagan jim
      James Quinn
      • Or...

        NonZealot is just full of it, as per usual
        zkiwi
      • RE: Apple and Costco go their separate ways

        @James Quinn

        I think that Apple's recent history shows that Apple is not always the easiest to deal with. I mean they get into fights with companies like Adobe and Google over some of which is pretty petty. They have a history of dis-approving apps they do not "agree" with despite customer demand again for what appears to be petty reasoning. Now I am not saying Costco is 100% innocent here but Apple is not known for being a team player most of the time.

        Just saying.
        bobiroc
  • WHEW!!

    At least Costco isn't threatening to drop Coca-Cola again. Finding bottled Mexican Cola is tough.
    oncall
    • RE: Apple and Costco go their separate ways

      @oncall
      but the mexican stuff is usually made with cane sugar.... yum!
      rhonin
      • RE: Apple and Costco go their separate ways

        @zenwalker
        I think its also has real coca in it to... cause its like crack... one sip and you're hooked. Lucky for me, I live in little mexico, and most places carry the MexiCokes.
        ShadowGIATL
      • Nah, the real difference is simple

        Mexican coca-cola has one ingredient that most others don't. They use -natural sugar-, which just plain tastes better.
        Michael Alan Goff
      • Coca-Cola would have you believe differently...

        @goff256...<br><br>Was listening to NPR the other day, and they had a spokesman from Coca-Cola who said that Coke made from corn syrup tastes identical to the Coke you get from Mexico, and that he doesn't understand America's fascination with Mexican Coke. He then reiterated that sugar is sugar.<br><br>I disagree completely. Coke from Mexico tastes like Coke, but it has different undertones. It's a smoother drink and doesn't have the same bite to it like American Coke.<br><br>I also think that being bottled in glass affects the flavor. If I buy canned pineapple juice, I can <i>taste</i> the aluminum in the juice. If I buy it in a bottle, or squeeze it fresh, no metallic taste, of course. And Coke, being quite acidic, is going to leech from the aluminum, just like the pineapple juice.
        WarhavenSC
      • Maybe

        @WarhavenSC
        Coca-Colo, instead of wasting money on PR trying to say "It doesn't taste different" get a clue and give consumers what they want. As for me, I like the bottled and will keep buying it as long as I can get it.
        oncall
      • They can say whatever they want

        Real sugar tastes better than syrup. I guess it could have something to do with the can vs bottle, as well, but I stick with real sugar being essential for great taste.
        Michael Alan Goff
      • RE: Apple and Costco go their separate ways

        @zenwalker We did a double-blind experiment to test whether cane sugar coke tastes better than corn syrup coke. In my family of five, EVERY SINGLE ONE OF US drinking from unmarked papers cups preferred cane sugar, and none of us knew which was which. The coke spokesman was just plain wrong, and you're just plain right. :)
        vulcan666
  • Afraid Apple doesn't need them

    The real question should be whether or not Costco "needs" Apple. How much money are they going to lose?

    Why would Apple need Costco, anyway?
    Michael Alan Goff
    • RE: Apple and Costco go their separate ways

      @goff256

      Any company that thinks it is 'too good' for certain customers is too arrogant for its own good, and if it keeps that up, it won't survive much longer
      Doctor Demento
      • RE: Apple and Costco go their separate ways

        Eh? Apple has always been arrogant, but that wasn't what I was talking about. More and more places are selling Macs, and I'm not just referring to the Apple store either. If there is a disagreement between one store and Apple, I doubt it will be the end of all that is Apple.

        iPods are sold at tons of places.
        iPhones are as well.
        I could get a Mac at ten or more different places in the city ~30 miles away.

        They have a lot of distribution, and that isn't counting the internet.
        Michael Alan Goff
      • RE: Apple and Costco go their separate ways

        @Doctor Demento Maybe I missed it but where exactly was it stated that Apple claimed they were to good for Costco customers or that it was exclusively Apple's choice to discontinue the relationship? To make those assumptions without any details is just jumping to conclusions that fit your hatred for a company.
        non-biased
    • RE: Apple and Costco go their separate ways

      @goff256 Costco doesnt need apple.
      Jimster480
  • RE: Apple and Costco go their separate ways

    Apple doesn't need Costco. Apple needs to fear Android.
    Grandpa1947
    • Why?

      Apple has never needed a large marketshare to be extremely profitable. Even if Android got 50% of the market, Apple would still be making more money. And isn't that what businesses are all about?
      Michael Alan Goff
      • RE: Apple and Costco go their separate ways

        @goff256
        Depends on the industry... high margin, low volume strategies become more risky the more competitive the market becomes... still; even with the ever increasing Android share, it is still safe to say that Apple is high volume, high margin. We'll have to wait until smartphone market growth levels out before the real games begin...
        rikasa