Costco Confirms End of Relationship With Apple

Costco and Apple have had some growing pains that reached a boiling point with the iPad. Costco was snubbed by Apple when it came to carrying the iPad. A recent report from a Costco spokesperson has confirmed the relationship between Kirkland and Cupertino will be ending:

The chain is phasing out Apple products, per a mutual agreement between the companies, Galanti told The Seattle Times. Costco had sold iPods and pre-loaded iTunes cards for years, although never at huge discounts; and Apple never allowed Costco to sell its products online like other retailers, he said. “In the past couple months, we agreed to wind down.”

Apple spokeswoman Amy Bessette said the company has no comment.

Typically the discounts at Costco for Apple goods were only marginal at best. Regardless, it was still a convenient place to buy gift cards and iPods. Apple doesn’t want their prices to fluctuate and be seen as on discount. Costco’s buying power most likely butt heads with Cupertino’s lust for control. It seems Apple is the one company Costco couldn’t slay for acquiring a discount on bulk orders.

Your thoughts? Will you miss seeing Apple goods at Costco?

[Seattle Times via TUAW]

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • That’s ok. Last year I got a Costco card through work for $40 I spent $26 dollars on a pair of snow pants and never used it again lol the card coated me more then I spent 😛

  • @shattle

    I really don’t understand WHY iPods should be realized in ‘bulk orders’ from Costco instead of Apple:)) Actually Costco is the warehouse style shop mostly for hockey moms from subs 🙂

  • JfromK

    Coated you in what ?!?! Eww….

  • JfromK

    No.

  • Anonymous

    All apple products at costco where the same price as in a apple store,so no real reason to go to costco to buy a apple product like ipod touch or ipad if they got it….now if you want a tv or a couch or a bed then you go to costco.

  • Haha nice eye. “costed” lol I guess I should edit that asap lol

  • This can’t be good for either company..

  • Knguncle3

    Way to go Costco. I love Apple product but it seems their arrogance is becoming more transparent. I work for a telecoms company and the rumor has it that when it comes to dealing with Apple exec, it’s simply take it or leave it attitude. Our mobile executive reps flew to Apple’s HQ at Cupertino to negotiate the iPhone resell deal. Our guys waited in the conference room for the Apple reps to show up. And when they show up, the Apple reps just lay down the contract and said I’ll be back later to pick it up. Unbelievable!

  • Joker Eh

    Not really, your guys went to them, they didn’t go to you. If I had a product in demand, it would be on my terms and nothing else. They knew your guys wanted what they have, there is no reason to negotiate. Could have been done by fax.

    Costco wants everything cheap while they sell at normal prices. There is no real savings at costco when you look at it. Most tv’s you find there are model numbers you can not find anywhere else, and most are junk anyways. Alot of electronics at Costco are left over inventory.

  • Joker Eh

    Who buys sofas or beds from Costco????????

  • Joker Eh

    Maybe they will put their iTunes cards on sale like they did a few weeks ago. I’ll go pick some up if they do that again.

  • Knguncle3

    yeah but most companies don’t do business like that. But I guess business is business. If Apple has got the edge right now, use it while they still can.
    As per buy electronics at Costco, I don’t get it there all the time because they don’t often have the best price. But you gotta like their warranty. Everything is at least manufacturer + 2 years, at no extra cost. A friend of mine bought a PS3 bundle at Costco, 2.5 yrs ago. It got the RROD. My friend still have the receipt and Costco gave him a full refund.
    So there are bonuses for buying electronics at Costco.

  • Ex

    I know Gary goes to Costco to get dinner via the free samples. Beats kraft dinner apparently 😉

  • Mark

    Are you kidding? Go by any local Costco and you will find some idiot trying to load a sofa or bed in there Ford Focus…

  • Dan

    It will interesting to see what Costco replaces the Apple SKUs with… SanDisk MP3 players? Android-powered Slates?

  • Anonymous

    LMFAO!!!! I work @ Costco and could have scooped Gary with this news months ago (old info now) but Mark is absolutely right……….but forgot to mention one key point………that the member who owns that Ford Focus doesn’t worry about trying to “fit” their mattress into the car………they EXPECT the employess to figure it out!

  • Anonymous

    And you could have gotten a complete refund for the membership too! Costco will refund you the membership fee if you’re unhappy with it. So if you had of gotten your refund you would of only spent the $26.00 plus whatever you saved on buying those snow pants from a ski shop or somewhere else more expensive!

  • Anonymous

    What mark and1his said. You be surprised how much people buy from Costco(cough cheap ppl)

  • Poor kids at school who get stuck with a “Sansa”, whereas everyone else had a Nano “watch” or an iPod touch with FaceTime. SANSA FTW!

  • This was an official confirmation that hit the wires. Next time shoot me an email! 🙂

  • There’s absolutely nothing wrong with having a full ‘sample buffet’ and washing it all down with some Kirkland cranberry juice. Sure hits the spot!

  • Costco’s return policy is rock solid. For that reason alone, they are an awesome place to buy things.

  • 1His_Nibs1

    HaHa…..maybe if I was on the payroll 😉

  • Anonymous

    Never bought iProducts from Costco, so no great loss for myself personally.

  • Where were you two years ago! Lol thanks for the info 😛 far to late
    for me now heh

  • Anonymous

    Yep….no one can touch it….not Best Buy……not Future Shop…….WalMart…….LD………Canadian Tire.

  • Leadergo

    This kinda sucks. I remember buying packs of 4 $15 iTunes cards for 50 bucks.

  • Anonymous

    I agree. Even open products and half eaten food, they will return for a full refund with a receipt and store credit without. You can’t beat their return policy with no questions ask. Costco in Toronto is now selling gasoline. Their prices are always ~8 cents cheaper than anywhere else.

  • Anonymous

    exactly which costco sells gas in toronto. I know theres one on 401 and warden area, dont know where a costco has gas stations.

  • Anonymous

    That is the location. It is south of Ellesmere Road just passed the train bridge on the east side. They converted the east side parking lot to make a 12 pump gas station.

  • Cnn

    Costco has good refund policies. If your ipod is scratched for some reason within the return period they will refund it no questions asked.

  • Keaven

    There is one in Montreal too now … the prices are really incredible … 7-8 cents too !!!

    If people want to know where .. it’s the Costco on the way to the Victoria bridge…

    Be ready to wait a little bit … everytime I went, there was a waiting line…

  • Scottyo

    Costco had a standard 2 year warranty on all their electronics. Which is why I usually buy my electronics from them. That plus the return policies is why it is easiest to deal with them, even if the price is not much lower

  • Joker Eh

    Yeah that warranty at Costco is like no other. Imagine buying an iPad then next year a new one comes out and then you return yours for a full refund and buy a new one. How does Costco handle that?That would be nuts. That may be the actual problem Apple has with them.

  • Joker Eh

    LMAO!!!!! That is so true. Last week my gf bought the 7.5ft xmas tree. I didn’t even think we came in her car. When we got to the car, we were like oops. Thats the problem with Costco you buy it now because you think it may not be there next time you come.

    And you didn’t go to Costco to buy that mattress, you just seen it there and thought wow a great deal. How to get it home is not important because you have it in your hands. LOL

  • Joker Eh

    Yeah but I am not waiting in line to get gas. I already save 0.07/litre using my petro-canada mastercard and 5 cent/litre savings card. You wasted gas just waiting in line.

    I don’t know what it is with Costco but people are drawn to it like ……