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

Monday June 9, 2014 11:23 am PDT by Eric Slivka
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.

[ 67 comments ]


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1080p
65 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.
Rating: 15 Votes
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sjc83
65 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?
Rating: 6 Votes
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Konrad9
65 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.
Rating: 5 Votes
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Komrad808
65 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.
Rating: 4 Votes
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beachbum357
65 months ago
I believe you get your activation fee back if you buy and activate at Costco;)
One advantage
Rating: 4 Votes
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aaronvan
65 months ago
This is great news! All hail Costco.
Rating: 3 Votes
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T5BRICK
65 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.
Rating: 3 Votes
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iSteve-O
65 months ago
They've always sold Apple products :D

Rating: 2 Votes
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flynz4
64 months ago

Yes and when they pulled the plug on Apple, they discounted everything. Gift cards, iPods, etc cheap.

Costco does not cave into vendors, its the other way around. They don't pull the same tactics that walmart does, but if they cannot get the best price for an item for their members they will not sell it.
Heck Costco is the number one wine seller in the world.
With hat kind of buying power, Apple would be foolish to keep their products out of Costco. I would say Apple caved.


Costco is quite a success story. Walmart and others sell crap cheap. By contrast, Costco sell mostly high quality stuff, at really good prices.

Minor gripe (and I understand why): You need a fire department with "jaws of life" to open Costco packaging.

/Jim
Rating: 2 Votes
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lewisd25
65 months ago
I knew this was coming. Apple needs as many brick and mortar retailers as possible to sell iWatches and an eventual line of Apple televisions.
Rating: 2 Votes

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