Apple News & Analysis : Three Guys And A Podcast

Itunes_costcoBeginning June 27, iPhones and iPads will once again be sold through Costco Wholesale. Apple's strong march back into Costco means Samsung will no longer be going unchecked within the U.S.'s largest club wholesaler. Apple will soon be reconnected the club's higher income Americans, tp which Costco largely caters. 

The average annual household income of each Costco membership is $96,000. The typical Costco member who purchases technology at the retailer is not part of the early adopter crowd. Rather, Costco members largely tie into what is called the "laggard" segment of the market, settling on whatever Costco is offering. This is a large high-income segment Apple has been missing for the past four years.

Costco's cellular kiosk network is owned by Car Toys founder and CEO, Dan Brettler, who released a letter earlier this month claiming Apple was finally going to be back in Costco Wholesale, but gave no details as to when. Speculation for Apple's return was for this autumn, but we have received first-hand information of June 27, and we firmly believe that to be accurate.

Costco has already begun springing up iTunes gift card end-caps, but whether the iPad will be sold exclusively as a connected carrier device via the kiosk location, or also sold as wifi devices on the warehouse floor is still unknown. iPod touch and Apple TV may also be offered via the warehouse, but we have yet to confirm that information. Either way, we'll know soon enough, as Apple is about to put a big dent into Samsung's Costco sales figures.

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3 Comments

  1. chas_m ~ June 19, 2014 23:23

    It is a sad commentary on the fall of the once-great US that **40 YEARS** after my father cracked into the upper-middle class at $100K-plus, today that figure still only represents "making it," rather than "well-to-do" as it once did. Try putting a family of four through college on the median US household of $50,500 (figure from 2011). Costco customers tend to be simply middle-class people who, on the whole, are able to live reasonably well. Far from rich, not that far from broke (but 2x farther from it than the average). Love Costco, love Apple, but this generation is in many important ways living less well than our parents, the first generation to do that. The income gap is real, the 99 percent-1 percent thing is real, and it is killing this country. #
  2. Mick G ~ June 21, 2014 09:08

    @chas m. Well said. Well said, my friend. I wish the vast majority of Americans, regardless of their political persuasion, would wake up to the fact that income inequality, the VAST gap that is growing does not serve anyone other than the ultra, ultra rich. Becoming or simply staying middle class has statistically, factually become more and more challenging and people don't realize how many of these families are one financial crisis away from joining a lower economic rung. I love Costco and Apple too, but this is an excellent point you have ferreted out here. Even our favorite products at our favorite most discounted place will not save us from a really scary economy bequeathed to our children. Apple needs to repatriate that money and along with most American multinationals, pay their fair share of taxes. It's a huge task before us to change this structure, but a good fight to fight. #
  3. AppleMan ~ June 25, 2014 11:25

    The Costco Wireless website is already offering Apple products online. http://membershipwireless.com/ #

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