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Apple and Costco Officially Parting Ways

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In mid-October, it was reported that warehouse club chain Costco would cease carrying iPods after it lost out in an expansion of iPad availability that saw its rival Sam's Club and other retailers such as Target and Wal-Mart gain distribution rights for the popular tablet device. In subsequent weeks, observers noted Apple's products beginning to disappear from Costco's stores.

The Seattle Times reports that the parting of ways between Apple and Costco has been officially confirmed, with the two companies coming to a "mutual agreement" to end their long-standing relationship.

The chain is phasing out Apple products, per a mutual agreement between the companies, 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."

Apple spokeswoman Amy Bessette said the company has no comment.

Apple's firm hold over pricing for its products and the deep discount pricing of warehouse clubs such as Costco have been somewhat at odds over the years, with the opposing sides reaching a middle ground of slight discounts on Apple products appearing at the club chains.