Costco Dropping iPod After Being Left Out of iPad Surge?

Membership club Costco, the third-largest retailer in the U.S., is preparing to cease carrying iPods, according to an iLounge source who asked not to be identified. Based on the report, which notes that iPods have already disappeared from the company's web site, Costco will stop carrying the iPod after being unable to stock the iPad, which has just been offered to or become available at competing retailers including Target, Walmart, and, soon, Sam's Club.

A check of several Costco locations by iLounge revealed stock of the current iPod touch, but the report's source indicates that locations are simply selling through their remaining stock before discontinuing the line. Costco has not offered an official statement on the matter, and it is unknown whether Apple is considering Costco for iPad distribution or if Costco would consider restoring iPod sales in the future with or without the iPad.