Morgan Stanley: Apple, Wal-Mart pact broader than some realize

“Apple Computer Inc.’s stock got a boost on Wednesday amid upbeat comments by a Morgan Stanley analyst, who said the computer maker’s pact with retail giant Wal-Mart Stores Inc. may be broader than some realize,” Michael Paige reports for MarketWatch.

“‘While we don’t believe Apple iPod availability at Wal-Mart is completely new news, we do think the partnership is broader than people think, in transition and set to expand in the near-term,’ asserted analyst Rebecca Runkle in a note to clients,” Paige reports. “Apple and the world’s biggest retailer have been expanding their pact to sell versions of Apple’s wildly popular digital music player from a test to a full partnership, marking a new development as of the last few months, according to Runkle. Sales of iPods at the Bentonville, Ark.-based retailer’s locations could boost Apple’s iPod sales by 100,000 units and add $20 million in revenue each quarter, according to the analyst’s conservative estimates.”

Full article here.

MacDailyNews Take: Apple is due to sell about 5.35 – 5.5 million iPod units this current quarter, according to a recent reports by Goldman Sachs and Piper Jaffray respectively. 100,000 units sold by Wal-Mart would account for about 1.8% of total units sold (based on 5.5 million figure).

43 Comments

  1. Believe it or not, there are a lot of people who are still clueless about iPods and having them in Wal-Mart will bring even more exposure of Apple’s MP3 player to the masses.

  2. Face it all computers are commodities. Apple is no longer a niche player or is trying very hard not to be. Selling to Wal-mart is the way to go. It may hurt our elitist Mac egos but Apple needs to sell in this retail environment. Back to school Mac mini specials would be fantastic for Apple. If they could get Apple store within a Wal-mart that would be the best news ever. Some people may not like Wal-Mart but they do over $250 Billion in sales. It’s the elephant in the room that you can ignore if you want but it’s always going to be there. You might as well strike up a conversation.

  3. Macs aren’t commodity computers, we hear.

    They sure aren’t. You can hardly buy a Mac anywhere, in fact. About time that changed, too. Wal-Mart will do just fine, thanks. So will some good old Wal-Mart discounting to go along with the deal. We can get discounted Macs on promotion straight from the Apple store on a regular basis. Why not Wal-Mart, too? I would love it.

    I’m sick of Mac being sooooo exclusive that I’ve never actually met another Mac user besides myself in the flesh. That’s just bunk. Bring on Wal-Mart. Yes indeed.

  4. God, I hate Wal-Mart and everything they stand for. I got a gift certificate for Wal-Mart for Christmas and althought I appreciate the gift, I dread going in there to spend it. Even the thought of visiting the website gives me the heebee-geebees. Suck!

    Anyways, I don’t know how Apple can keep Wal-Mart from whoring down the prices of Apple products. That is the polar opposite of what Wal-Mart does. They take the profit out of selling or even manufacturing products. A real cancer of the retail world.

  5. “What’s a Wal-mart?”

    Don’t you remember that series “A Simple Life” with Paris Hilton and Nicole Ritchie?

    Paris asked the same question “What’s Wal-Mart” and Nicole Richie replied “I think it’s a place where you buy walls.”

    The sad part about that scene is that they were being genuinely serious.

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  6. Furthermore, Right now would be just about a perfect time to load those Wal-Mart stores right up to the ceiling up with PPC boxes; drop the bottom out from under the prices and let her rip. Sell the living bejeezus out of those suckers and then go right ahed and sell ’em some more. It would be like heaven. lolol.

  7. Give the analyst some slack, guys. One has to be conservative when making predictions about future sales. You don’t want to be caught in a position where you say, “1 million extra sales per quarter” and then the actual result is 300,000 per quarter.

    Besides, the Wal-Mart deal would have an impact beyond just bottom-line numbers. This totally legitimitizes the iPod among retailers – if Wal-Mart can sell a lot of them, there is no reason why any other retailer can’t – this will force a re-evaluation on how well the iPod is being positioned in the retail outlets that sell them now.

  8. That’s it! Apple could spin the slow and clunky IBM chipped Macs (which we secretly know are just as good) as the Wal-Mart consumer grade product, and promote the new speedy Intel Macs as premium grade. Yeah! And then keep just keep selling both kinds! Like crazy!

    Bwahahaha!

  9. iPods sell themselves (and/or have a long-standing ad campaign to help). But will Macs at Wal-Mart just be a repeat of the Best Buy situation, where they get treated like something from the Island of Misfit Toys? I hope not but suspect so.

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