Wal-Mart loses ‘philosophical argument’ with Apple CEO Steve Jobs, gains top-selling iPod
Tuesday, November 29, 2005 - 02:15 PM EST"Wal-Mart Stores Inc. said its sales on Saturday were slightly weaker than those posted during the post-Thanksgiving 'Black Friday' kickoff to the holiday season," James Covert reports for Dow Jones. "Sales on Saturday were 'OK,' but saw 'a slight drop in the slope' from Friday's levels, Wal-Mart Senior Vice President and Treasurer Jay Fitzsimmons told investors Tuesday at a conference hosted by J.P. Morgan & Co. that was made available by Webcast. But the day-over-day decline partly reflected the fact that last year's Black Friday was disappointing, Fitzsimmons said. Sales for this year's post-Thanksgiving weekend overall were better than in 2004, he said."
"He noted that Apple Computer Inc.'s iPod digital music players were among the items conspicuously absent from Wal-Mart's shelves last year. The reason was that Wal-Mart was in a 'philosophical argument' with Apple Chief Executive Steve Jobs over whether the iPod player should play music from more varied sources, Fitzsimmons said," Covert reports. "'He won, we lost. Now we have Nanos in the stores,' Fitzsimmons said, referring to the latest, smallest version of the iPod."
Full article here.
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MacDailyNews Take: The "philosophical argument" goes like this: iPods can't play music from our Windows-only-Mac-users-be-damned Wal-Mart online music store, so we're not going to sell iPods. We'll sell other brands. Result? Wal-Mart didn't sell much of anything. Virtually nobody bought the also-ran players and since virtually everybody with a portable music player owned an iPod, nobody bought from Wal-Mart's - or any other outfits' - ghettoized online music stores. So, rather than continuing to leave money on the table on both hardware and content, Wal-Mart revised their "philosophy" (back to the familiar "make money hand over fist" mantra) and decided they'd damn well better carry Apple iPods even if their own online music store doesn't sell iPod-compatible music files. Apple's iTunes Music Store, of course, sells iPod-compatible music and serves both Mac and Windows users, which is why it dominates the market so effectively.


Too bad Wal-Mart didn't win that one. It's frustrating when you find an online album that you want to download but can't because Apple won't license FairPlay. iTMS may have the largest catalog, but it doesn't have everything.