Divorce: Apple and Costco

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Truthfully, the marriage hasn't been working for a long time. But now it's official! According to Costco's CFO, Richard Galanti, Costco and Apple are parting ways, phasing out those leftover iPods and iTunes gift cards as we speak.

It's a shame, given that Costco's 450 U.S. warehouse club stores primarily serve small business owners and the self-employed. Apple should be expanding its line at Costco, instead of pulling out. It appears, however, it is putting all its eggs instead in the Walmart basket.

It hasn't been an easy relationship for Costco, a store that's all about offering deep discounts. Apple never allowed them; only giving minor price cuts on its products. It also never allowed Costco to sell its stuff online, as it does with other retailers. Reportedly, the death blow came earlier this year when Apple did not include Costco in iPad sales. Sam's, Walmart, and Target all got distribution rights for the iPad.

I wonder how Walmart will reward Apple for jilting its competition?

I wonder who will miss whom first? I'm guessing Costco will miss Apple first. If I were them, I would give Android products an entire corner of the store. Hello, Samsung!

Last updated: Dec 10, 2010




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