In its annual meeting today, discount retailer Sam’s Club confirmed that it will be carrying the iPhone and the iPad at an undisclosed date in the future. The addition of these Apple-branded devices is meant to bolster the retailer’s electronics lineup and improve its overall offerings. This addition should not come as a surprise as Sam’s Club is owned and operated by Wal-Mart. Earlier this week, Wal-Mart confirmed that it will begin selling the iPad as early as the end of this week.
With the production of both mobile devices now exceeding demand, Apple has ample inventory to offer these devices to third-party retailers. The iPad and iPhone is or soon will be available at Best Buy, Wal-Mart, Target, and Sam’s Club. This in-store expansion is perfectly timed to coincide with the holiday shopping season and the explosion of incoming Android tablets and handsets. No doubt Apple decision to expand is two-fold: Apple is trying to secure the retail position of the iPad and iPhone against it Android competitors and is trying to grab a slice of the retail profits that balloon each holiday season.
What’s most interesting about this expansion is the choice of retailers that will be selling Apple’s mobile devices. Rather than focus on high-end retailers like Best Buy or Amazon, Apple is targeting the average joe by offering the iPad and iPhone at discount retailers like Wal-Mart and Sam’s Club. While the Android tablets and phones may viewed as a device for the ultra-geeky, the iPad and even the iPhone is marketed as device for everyone. It will be interesting to see how well both devices sell in this discount retail sector when the holiday season is over and done.
I don’t know about you but I think the premium prices for these mobile devices is higher than the average Wal-Mart of Sam’s Club consumer would be willing to pay. Most folks looking to drop $500 on a tablet device or $300 on a mobile phone would be more likely to trek down to their local Best Buy than their local Wal-Mart. Wal-Mart and presumably Sam’s Club will be offering both devices at their full retail price so there is no incentive to shop at these discount retailers.
That being said, I could see both devices selling well in areas that do not have a Best Buy or Target. A mad run from crazed holiday shoppers may help also Wal-Mart and Sam’s Club as they would be the places to go when Best Buy or Target is sold out of their inventory.
[via The Street]