Opinion: An Apple Move to Wal-Mart is Bad Business

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Credit: Dystopos, used under a Creative Commons license.

Wal-Mart is busy re-vamping the electronics departments in 3,500 of its giant retail stores, in a move to both fill the void left by Circuit City’s recent bankruptcy and to compete with another electronics mega-chain, Best Buy. But some believe it’s also actively lobbying Apple to become a distributor for more than just iPods and iPhones.

Bentonville, Ark.-based Wal-Mart is widely perceived as a low-end discounter whose vast properties are largely filled with the cheapest, most useless junk Americans could dream of importing from China, which makes Barclays Capital analyst Ben Reitzes’ opinion that Wal-Mart is angling to one day carry Macs all the more disconcerting.

Speculation over Apple’s interest in expanding its fewer than 10,000 worldwide distribution points comes amid recent data indicating that Microsoft’s advertising blitz over the past year has succeeded in re-positioning devices that run the Windows OS as value propositions in the computer world.

But this Mac user wonders whether a move into retail’s hoi-polloi might cost Apple more in the long-run than it would gain from the increased revenue that would surely come from the greater retail exposure a distribution deal with Wal-Mart could represent.

There has always been something satisfying, from the user perspective, about the panache of owning an Apple product; in many respects – as mythical as the concept of an “Apple premium” might in reality be – some Apple owners believe they get more for their money, and are willing to pay for the sense of exclusivity the company’s limited distribution network provides. Similar perceptions have maintained the public’s high regard and brand loyalty for companies such as Bose and Bang & Olufsen for years.

If the demands of a rebalancing global economy and of shareholders’ inexhaustible lust for profits cause Apple to seek a different path it would be a real shame, and likely signal the beginning of the end for the company that once implored the world to Think Different.

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