Costco Preparing to Begin Selling iPhone and iPad as iTunes Store Gift Cards Return [Updated]

Back in late 2010, Apple and warehouse club chain Costco parted ways, ending a relationship that had seen Costco carrying iPods and iTunes Store gift cards. The two companies now appear to have patched up their differences, reaching an agreement that will see the second largest retailer in the U.S. begin carrying the iPhone and cellular iPads through its wireless kiosks.

costco_logo
The news comes via an email from Dan Brettler, founder and CEO of Car Toys and its Wireless Advocates subsidiary, which handles wireless sales for Costco. The email was sent to Wireless Advocates employees, notifying them of the new partnership.

Wireless Advocates Team,

I am extremely excited to share the news of a new partnership between Apple Inc. and Costco Wholesale. This partnership will bring a top selling line-up of Apple products to Costco members including the iPhone and embedded iPads. As Costco's solution for wireless devices and services, we are proud to be a part of this new partnership and incorporate Apple products into our already strong product line-up in Costco.

We already know Apple products. They are not new to our business. We currently sell Apple products in two of our three enterprise channels (Car Toys and Military). We already have a great business partnership with them and this new opportunity strengthens that relationship. They are valuable to our long-term success and growth in our space. This initiative will accelerate same store sales through performance gains and new products and services, as well as enhance our strategic partnership with our suppliers. This is critical to the overall success of "Our 5 Strategic Business Initiatives".

In his email, Brettler acknowledges that there is still "much backend work and physical kiosk work" to be done before Costco stores can begin selling iPhones and iPads, and he does not provide a timeline for the start of sales. He does, however, promise to keep employees updated as the project moves forward.

Beyond iPhone and iPad, several Twitter users have reported yesterday and today that Costco has once again begun selling iTunes Store gift cards. This is likely separate from the hardware partnership with Wireless Advocates but part of the broader agreement between Apple and Costco, with the gift card portion moving forward on a faster timeline due to the ease of rollout.

Update 9:09 PM: We've heard that additional Apple products such as iPods and Wi-Fi iPad Airs have begun appearing in Costco's internal inventory systems.

Top Rated Comments

Agent OrangeZ Avatar
98 months ago
Is there any advantage to buying an Apple product at Costco? Do I get 500 rolls of toilet paper for free or something?

No, but you can pick up and all beef hotdog and soda for $1.50 while you're there.
Score: 15 Votes (Like | Disagree)
sjc83 Avatar
98 months ago
Is there any advantage to buying an Apple product at Costco? Do I get 500 rolls of toilet paper for free or something?

YES, how about the FREE extra year warranty on ALL electronics?
Score: 6 Votes (Like | Disagree)
Konrad9 Avatar
98 months ago
I can't even remember why they broke up in the first place.

I do recall Costco kicking Coke out a few years back, when not agreeing on paying a higher price.

Actually the Coke thing was when Costco found out Coke was selling to Walmart at a lower price, and demanded the same price. Coke said no, so Costco said "toodles!"

Guess who caved?

----------

Better return policy than Apple Store?

And you get to support a business that treats its employees well. Very high pay (for the industry), very good benefits.
Score: 5 Votes (Like | Disagree)
beachbum357 Avatar
98 months ago
I believe you get your activation fee back if you buy and activate at Costco;)
One advantage
Score: 4 Votes (Like | Disagree)
Komrad808 Avatar
98 months ago
Nice! While I eat the free food samples, I get to look at Apple products. This will indeed help me to kill more time while the wife shops at Costco.
Score: 4 Votes (Like | Disagree)
T5BRICK Avatar
98 months ago
And you get to support a business that treats its employees well. Very high pay (for the industry), very good benefits.

This right here. My wife has worked for Costco for just over 10 years now. They have great pay and great benefits.
Score: 3 Votes (Like | Disagree)

Related Stories

iphone holiday

Best Black Friday iPhone Deals Still Available

Friday November 26, 2021 4:58 am PST by
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2021 sales have now carried over into Cyber Monday as well. Right now we're tracking notable offers on the iPhone 13 and iPhone 13 Pro devices from AT&T, Verizon, and T-Mobile. For even more savings, keep an eye on older models like iPhone SE. Note: MacRumors is an affiliate...
General cyber monday 20 sale feature

Best Cyber Monday Deals for AirPods, Apple Pencil, iMac, More

Monday November 29, 2021 4:19 am PST by
With Black Friday over, Cyber Monday 2021 is now in full swing and you can find many of the same sales as last week on Apple products like AirPods, Apple Pencil, and iPad Pro. In this article we're focusing on the best Cyber Monday discounts on Apple products like these and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we...
Mac Notebook Upgrade Program

Apple Introduces New MacBook Upgrade Program for Business Partners

Monday November 29, 2021 7:38 am PST by
In association with CIT as the financing partner, Apple has launched a new Mac Upgrade Program for small businesses and Apple business partners that allow companies to easily distribute and upgrade their fleets of MacBooks at an affordable price to all of their workers. As outlined on CIT's website, shared by Max Weinbach, Apple Business Partners can distribute the 13-inch MacBook Pro,...
airpods family holiday

Best Black Friday AirPods Deals Still Available

Friday November 26, 2021 4:04 am PST by
Black Friday 2021 deals are still going strong into Cyber Monday, and in this article we're tracking the best deals across Apple's AirPods lineup. Throughout the week we've been sharing the best sales for Apple devices like iPhone, Mac, and iPad, so be sure to follow us on Twitter for all of the latest Black Friday sales Note: MacRumors is an affiliate partner with some of these vendors. When...
apple mixed reality headset mockup feature purple

Kuo: Apple AR Headset Coming in Late 2022 With Mac-Level Computing Power

Thursday November 25, 2021 8:32 pm PST by
Apple's long-rumored augmented reality (AR) headset project is set to bear its first fruit late next year with the launch of the first device carrying a pair of processors to support its high-end capabilities, according to a new research report from noted analyst Ming-Chi Kuo seen by MacRumors. According to Kuo, the higher-end main processor is said to be similar to the M1 chip Apple...
mac family holiday

Best Black Friday iMac and MacBook Deals Still Available

Friday November 26, 2021 4:29 am PST by
Our Black Friday 2021 coverage continues with the best deals you can find on MacBook Pro, MacBook Air, iMac, and Mac mini today. As with all Black Friday deals, we aren't sure how long any of these will last, and prices are always fluctuating, so if you see something you want, be sure to buy it soon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and...
General cyber monday 20 sale feature 2

Best Cyber Monday Apple Accessory Deals Available Today

Monday November 29, 2021 6:41 am PST by
We started sharing deals on Apple products for Cyber Monday 2021 earlier today, and now we're tracking deals and bargains available from all of the best Apple accessory companies. Similar to Black Friday, you can expect Cyber Monday savings from Twelve South, Nomad, Belkin, Casetify, and many more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and...