Costco to drop the iPod due to iPad snub?

Costco may have some clout in the retail world – it is the largest membership discount chain in the US, the #3 retailer in the US, and the #7 retailer worldwide. Despite its size and influence, Costco is apparently not a darling of Apple. A circulating rumor from iLounge suggests the discount chain is upset that it was not offered the Apple iPad while its competitors Wal-Mart, Sam’s Club and Target begin to stock their shelves with Apple’s popular tablet device to coincide with the holiday shopping season.

In response to this rumored snub, the discount retailer is reportedly dropping the iPod from its electronics lineup and will no longer offer the portable music player. While shelves inside of an unknown number of its retail stores remain full, the rumor suggests that this is merely the current standing inventory. The retailer will sell through its current inventory and will not replenish its stock of the iPod. Costco has already removed the iPod from its website and is only offering iPod accessories from third-party manufacturers.

Another earlier rumor from TiPB suggests this ban reportedly extends to the iPhone and all Apple-branded accessories in the US and Canada. While the iPhone is not widely available in stores n the US, it is reportedly available in some retail locations in Canada. This original rumor also claims Apple inventory was being pulled from mobile kiosks and warehouses following an emergency company conference call.

It remains to be seen whether this report is mere speculation or an actual business tactic by Costco meant to strong-arm Apple into offering the iPad through Costco stores. While I can not comment on the validity of this rumor, it is interesting to note that Costco has used this tactic before. In 2009, the retailer removed Coca-Cola products from its stores following a pricing dispute with the soft drink manufacturer.

[Via iLounge and TiPB]

About The Author

Kelly Hodgkins

Kelly spent the last four years covering mobile technology at places like BGR, Gizmodo and The Unofficial Apple Weblog. Before writing, she spent a few years working with and teaching others how to use Adobe Flash and Macromedia Director. Even earlier than that, she spent several years as a Ph.D student in Microbiology. When she's not writing, she can be found fishing the lakes and hiking the mountains of Western Maine with her husband and tribe of children. You can follow her on Twitter @kellyhodgkins.

http://twitter.com/ksaim Kristopher Saim

Considering the iPod is one of the hottest holiday gifts each year and a destination shopping Orem for most who purchase it, I can’t imagine this being true. It’s not the same price point as a case of Coke and likely has more importance on Costco’s shelves. I would personally be shocked if Costco drops the iPod.
http://twitter.com/BogartOfElCajon Francis Imperial

Yeah! Costco won’t be bullied like anybody else. FTW Costco!
randy seifer

Apple remembers when they were the little guy.
Wireless Con

Welcome to Costco; I love you.
Wireless Con

Welcome to Costco; I love you.
Me

Costco pulled Apple products because they referred to Jim Sinegal as “the old guy” when he went to renegotiate their contract.

After the fact, Apple offered the same contract to Walmart and Sam’s Club.

If Apple can’t show respect, then good for them for dropping Apple’s product.
Illbuyourcatfish

From a source inside Costco. “Why we aren’t carrying Apple products anymore. Every year Costco and Apple get together to discuss the years sales deal. This year when Costco came to the table they asked for a more competitive price on Apple products as well as a better deal on returns on defective ipods (a whopping 12% of all ipods come back defective which Costco has to eat/Ipods also top Costcos’ list of returned items) Apple supposedly told Costco that they don’t need their business so Costco ceased all orders of Apple products. It seems to be almost a mutual cease, Apple wont drop their prices to devalue their brand and Costco only deals in large volume “wholesale” pricing. It almost certainly has nothing to do with Ipads.
2hell4it

Costco dont need you Appel you need us.Dont forget about Motorola Droid is kicking the Iphone out the door
http://pulse.yahoo.com/_GJYPSPZT4WZVLYSYMN7ZAWVBQQ elliot d

Don’t forget Steve Jobs dose not give to Charity. Expect more of him. Steve Job is very Abusive guy. if the app is Illegal u cant put it on the apple device. Microsoft dose not do that.. one nice thing about costco is if you do not like it u have 30 days to return the Ipod. most other places will not let you return the Ipod and your stuck with it.I like Bill Gates by far so much better in his tone of Attitude towards the poor people and he gives so much to poor. this Holiday Season expect bill gates to give plenty of money to food banks that feel people every day. What has steve Jobs Given to the poor people ? SAD.
http://pulse.yahoo.com/_GJYPSPZT4WZVLYSYMN7ZAWVBQQ elliot d

I like it if there was a Steve Jobs Foundation to help the poor people , I might get a Microsoft Windows 7 phone only as soon as they put a cam on it. I’m waiting on Microsoft.
User571

Actually the rumor is incomplete. I know because i work there. It was not because the iPad wasn’t offered to Costco, it was because Apple would not honor the 90-day return policy that Costco has. That kinda tells you something about the product right there.
Anonymous

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