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
104 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
104 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
104 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
104 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
104 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
104 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)

Popular Stories

apple ar headset concept 1

Apple's Headset Said to Feature 14 Cameras Enabling Lifelike Avatars, Jony Ive Has Remained Involved With Design

Friday May 20, 2022 6:50 am PDT by
Earlier this week, The Information's Wayne Ma outlined struggles that Apple has faced during the development of its long-rumored AR/VR headset. Now, in a follow-up report, he has shared several additional details about the wearable device. Apple headset render created by Ian Zelbo based on The Information reporting For starters, one of the headset's marquee features is said to be lifelike...
iPhone 14 Purple Lineup Feature

Will the iPhone 14 Be a Disappointment?

Saturday May 21, 2022 9:00 am PDT by
With around four months to go before Apple is expected to unveil the iPhone 14 lineup, the overwhelming majority of rumors related to the new devices so far have focused on the iPhone 14 Pro, rather than the standard iPhone 14 – leading to questions about how different the iPhone 14 will actually be from its predecessor, the iPhone 13. The iPhone 14 Pro and iPhone 14 Pro Max are expected...
sony headphones 1

Sony's New WH-1000XM5 Headphones vs. Apple's AirPods Max

Friday May 20, 2022 12:18 pm PDT by
Sony this week came out with an updated version of its popular over-ear noise canceling headphones, so we picked up a pair to compare them to the AirPods Max to see which headphones are better and whether it's worth buying the $400 WH-1000XM5 from Sony over Apple's $549 AirPods Max. Subscribe to the MacRumors YouTube channel for more videos. First of all, the AirPods Max win out when it comes ...
studio display 3

Apple's Rumored 27-Inch Mini-LED Display Now Said to Launch in October

Friday May 20, 2022 8:07 am PDT by
Apple now plans to release a new 27-inch display with mini-LED backlighting in October due to the Shanghai lockdown, which has resulted in production of the display being delayed, according to display industry consultant Ross Young. In a tweet, Young said Apple is in the process of moving production of the display from Quanta Computer to a different supplier and/or location, resulting in a...
HomePodandMini feature green

Kuo: Apple to Release New HomePod in Late 2022 or Early 2023

Friday May 20, 2022 8:55 am PDT by
Apple is working on an updated version of the HomePod that could come in the fourth quarter of 2022 or the first quarter of 2023, according to Apple analyst Ming-Chi Kuo. Kuo says that there "may not be much innovation in hardware design" for the new HomePod, and there is no word on what size the device will be and if it will be a HomePod mini successor or a larger speaker. Apple would ...
airtag purple

Best Apple Deals of the Week: Save on AirTag, AirPods 3, and iPads

Friday May 20, 2022 8:01 am PDT by
Solid markdowns on the AirTag, AirPods 3, and a few iPad models were introduced this week, and below you'll find all of the best deals of the past few days that are still available to purchase. AirTag Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. What's the...