Rumor: Costco Dropping iPod Lineup Over iPad Snub

Justin Kerr

Even if you don’t shop at Costco, chances are if you live anywhere in North America you’ve at least made eye contact with one of their monolithic warehouses that line the sides of almost every major highway. Costco’s footprint makes them the third largest retailer in the United States, but even with all that negotiating power it appears as though they may be considering the atomic option to get back at Apple for refusing to let them carry the iPad.

According to anonymous sources quoted by iLounge , the company has intentionally pulled all iPod hardware from its website, and will slowly deplete its retail stock before dropping the lineup altogether. This might sound like a fairly harsh recourse, but it likely has more to do with the fact that rival outlets including Target, Wal-Mart, and even Sam Club will all carry the device going into the holiday season.

If this story is indeed true it will be interesting to see if Costco has the power to bully Steve Jobs into submission. I imagine we have quite a few readers out there that would love to see him eat a piece of their Kirkland branded humble pie.

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