Costco's Chief Financial Officer Richard Galanti confirmed in a fiscal first-quarter earnings call on Wednesday, that the company is in the process of phasing out all Apple products from its shelves.
Sources have attributed the move to the big-box wholesale chain getting locked out of selling highly coveted Apple products like the iPad, which competitors like Sam's Club, Wal-Mart and Target stores had been given access to within six month's of launch.
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."
The 2010 holiday season could be the last for Costco members to conveniently grab last minute Apple gifts like the iPod touch or Nano which were often showcased close to the store's entrance.
Although Galanti claimed that the parting of ways is a mutual agreement between the two companies, it's likely Apple will work to repair the breach behind the scenes. The iPad 2 may be the perfect bargaining chip. The new device due in early 2011, is expected to be loaded with front and rear facing cameras which opens up the ability for FaceTime video chats.
Apple spokeswoman Amy Bessette told The Seattle Times the company has no comment.
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